Workday to cut approximately 500 jobs in second 2026 workforce reduction

Workday, the American enterprise software-as-a-service provider, is implementing its second workforce reduction of 2026. The company plans to eliminate approximately 500 to 525 positions, representing about 2.5% of its global workforce.

The layoffs are primarily concentrated within the product and technology divisions as the company seeks to realign its organizational structure with strategic growth priorities. This follows a previous reduction in February that impacted roughly 400 workers in global customer operations.

Workday expects restructuring charges to range between USD 65 million and USD 85 million, which will impact its fiscal third-quarter financial results. Despite these cuts, the company indicated it will continue targeted recruitment in specific priority areas and locations.