Workday said on Wednesday that it will reduce about 1750 jobs, or 8.5 % of the current workforce, as the human capital management company invests heavily in artificial intelligence to counter the macroeconomic environment more soft.
California -based shares have jumped more than 4 % in the pre -market trade.
Workday Carl Eschenbach CEO said that workers’ layoffs are necessary to determine the priorities of investments such as artificial intelligence, while liberalizing resources to expand the company’s presence in various countries.
Workers’ layoffs come at a time when the human capital management industry has been subjected to a slower spending by institution agents, as high interest rates have pressed technical budgets.
Workday expects to bear about $ 230 million to $ 270 million of fees related to the cost reduction plan, and it is expected that about $ 60 million to $ 70 million will be recognized in the fourth quarter.
As of January 31 of last year, the company had about 1,800 employees.
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The working day faces intense competition from other players in a crowded industry, as companies strengthen their position through acquisitions to take their share in the market.
Last month, Paychex said that she would enjoy $ 4.1 billion in cash, while Workerce Mostudce Services automatic data for about $ 1.2 billion in cash in October.
Workday also said that she expects to be the fourth fiscal quarter and the financial results of the whole year are coherent with or higher than its previous expectations.
The company expected the annual subscription revenues of $ 7.70 billion in November, while it expects the subscription revenues in the fourth quarter will be $ 2.03 billion-walking with analysts’ expectations, according to the data collected by LSEG.
Workday also said that she expects to close some of the offices of the offices you own and the procedures associated with the cost reduction plans by the second quarter of the fiscal year 2026 must be completed.
