Workday’s Big Layoff: A Turning Point for HR Tech?

The HR tech world was rocked as Workday announced the elimination of 1,750 jobs—roughly 8.5% of its workforce. The restructuring, framed as an effort to align with customer needs and invest in AI, has left many HRIS professionals wondering: What does this mean for the industry?

Go to the end to get the leaked internal Workday email address addressing the lay off.

In this episode of HRIS Careers, we break down the layoff announcement, what it signals for the future of Workday and HR technology, and how professionals can navigate the uncertainty.

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What We Know About the Layoffs

Workday leadership stated that these cuts are part of a strategic shift toward AI and efficiency. Affected U.S. employees will receive at least 12 weeks of severance, plus additional stock vesting, career services, and other support.

However, companies don’t eliminate nearly 2,000 roles unless there’s real pressure. Despite Workday’s claims of future-focused restructuring, this move raises questions:

Is Workday feeling the heat from growing competition in HR and payroll software?
Is AI actually making some HRIS jobs obsolete?
Could more layoffs be on the horizon?

For HRIS professionals, whether working within Workday ecosystems or consulting on implementations, this shake-up signals a changing landscape.

What This Means for HRIS Professionals

💡 HR Tech Spending May Be Tightening

If large enterprise customers are slowing HR tech spending, vendors like Workday could feel the squeeze. This may impact hiring and project budgets across the industry.

💡 AI & Automation Are Reshaping Roles

Companies like Workday are doubling down on AI-driven efficiency. While this doesn’t mean HRIS jobs are disappearing, it does mean professionals should stay ahead by upskilling in automation and AI-enhanced workflows.

💡 More Industry Shake-Ups Could Follow

This isn’t just about Workday. Other HR tech companies like UKG have also made recent job cuts. Staying informed and adaptable is more important than ever.

What to Do If You’re Impacted (or Feeling Uncertain)

If you were affected by this layoff—or are worried about job security in HR tech—here’s what you can do:

✅ Leverage Workday’s career support – Use the resources they’re offering to transition smoothly.

✅ Update your LinkedIn & resume – Make sure your skills and experience stand out.

✅ Network & stay visible – The HR tech world is small. Let people know you’re looking.

✅ Explore opportunities in growing companies – Vendors like Deel, HiBob, and Paradox are expanding.

✅ Consider consulting or short-term projects – It can be a great way to bridge gaps and gain experience.

💼 Looking for HRIS jobs? Register on HRISCareers.com to get alerts on new opportunities.

Leaked Internal Workday Email Addressing The Layoffs

Subject: Changes to Position Workday for the Future

Workmates,

Our journey at Workday has always been about challenging the status quo, embracing change, and putting our customers at the heart of everything we do. As we start our new fiscal year, we’re at a pivotal moment. Companies everywhere are reimagining how work gets done, and the increasing demand for AI has the potential to drive a new era of growth for Workday.

This creates a massive opportunity for us, but we need to make some changes to better align our resources with our customers' evolving needs. This means investing strategically, helping teams work better together, bringing innovations to market faster, and making it easier for our customers and partners to work with us.

To help us achieve this, we have made the difficult, but necessary, decision to eliminate approximately 1,750 positions, or 8.5% of our current workforce. We'll start meeting with affected employees shortly, with the goal of reaching as many as possible today, subject to local requirements where a consultation period is required.

I realize this is tough news, and it affects all of us—the Workmates who are leaving and those who’ll continue with us. I encourage you to work from home or head home, if you’re already in the office.

Why We’re Making These Changes

The environment we’re operating in today demands a new approach, particularly given our size and scale. We have to adapt by thinking differently, acting boldly, and investing strategically. We’ll be evolving throughout FY26 in a few important ways:

Prioritizing investments: While we are eliminating some positions, we will continue to hire in key strategic areas and locations throughout FY26. We're also prioritizing innovation investments like AI and platform development, and rigorously evaluating the ROI of others across the board.
Re-engineering processes: We're evolving our processes to empower faster decision-making and to accelerate innovation.
Clarifying roles and responsibilities: We're ensuring everyone has a clear understanding of their contributions to our shared success.
Expanding our global footprint: We're investing in strategic locations with strong talent to better serve our customers worldwide.

Supporting our Workmates

To those who are leaving us, I want to express my sincere gratitude for your hard work, dedication, and the valuable contributions you've made to Workday's success. We are committed to providing support and resources to help you navigate this transition.

Affected employees in the U.S. will be offered a minimum of 12 weeks of pay, with additional weeks based on tenure. In addition, they will be offered additional vesting of restricted stock unit grants, career services, benefits support, and immigration support. Outside the U.S., affected employees will be offered packages based on local standards, which will be aligned with U.S. packages, where possible.

Next Steps

To those of you who will continue this journey with us, I'm grateful for your dedication and partnership as we move into Workday's next chapter. Your contributions will be vital to our future success. I will share additional thoughts on this news in our company meeting tomorrow, including our approach to hiring and location strategy.

In a couple of weeks, we’ll hold our company kickoff to go deeper into our updated strategic plans and key investment areas. This will be an important opportunity to connect and hear more about our vision for the future.

We have so much opportunity ahead of us, especially with the potential of AI, and we have a strong foundation to build upon. While we have work ahead to realize our vision and full potential, today is about focusing on taking care of each other. I am proud and grateful for how you support one another, our customers and partners—particularly in moments like these.

Carl

Final Thoughts

Workday’s layoffs mark a big moment in HR tech. As the industry shifts toward AI and efficiency, professionals need to stay adaptable and proactive.

Have thoughts on this? Comment on Youtube or Spotify or share this with a colleague. We’ll be keeping a close eye on how this plays out—and what it means for the future of HRIS.