East Bay technology company considers cutting over 1000 jobs worldwide and reducing office space in Silicon Valley.

A major East Bay technology company, in the wake of the growing artificial intelligence industry, has announced plans to cut more than 1,000 jobs as part of a strategic restructuring process. The CEO of Workday, Carl Eschenbach, revealed that approximately 1,750 positions, equating to 8.5% of the company’s workforce, will be eliminated. This challenging decision was detailed in a filing with the U.S. Securities and Exchange Commission.

In a statement to company employees, Eschenbach emphasized the necessity for these layoffs, expressing that Workday is adapting to new demands in the modern workplace, especially with the increasing interest in artificial intelligence. Acknowledging the potential for growth in AI, Workday intends to channel resources into AI-related projects by hiring a group of new workers while streamlining existing operations to meet market demands.

Eschenbach highlighted the significance of investing wisely, facilitating collaboration among teams, accelerating innovation cycles, and enhancing customer and partner relationships. The company is navigating a period of turbulent change as jobs are slashed, and office locations are reevaluated. Workday underwent a similar restructuring process two years ago when nearly 200 positions were cut in Pleasanton.

The exact timeline for the current round of layoffs remains uncertain. Workday plans to commence discussions with affected employees promptly to ensure a smooth transition while adhering to local regulations regarding consultation periods. Additionally, the company has disclosed intentions to move away from certain office spaces, although specific details about these locations are yet to be revealed. Workday notably purchased office buildings worth $172.5 million on Stoneridge Mall Road in 2021, which includes the company’s headquarters.

In recent operational reports, Workday demonstrated a healthy financial standing with significant revenue and profit margins. Despite the forthcoming job cuts, the company expects its 2025 financial results to align with or surpass previous forecasts. Eschenbach affirmed that Workday will continue to recruit new talent strategically, despite these layoffs, emphasizing ongoing investments in key areas and locations vital to the company’s growth trajectory. Overall, the restructuring process signals Workday’s commitment to adapting to changing market landscapes and emerging opportunities, especially within the lucrative AI sector.