Aniel Bhusri and Carl Eisenbach, co-CEOs of Workday, speak at the Squawk Box at WEF in Davos, Switzerland on January 17, 2023.

Adam Galitsa | CNBC

Working daythe cloud-only business planning software company will lay off 3% of its workforce, the company’s co-CEOs wrote in a memo to employees.

In October 2022, the number of employees of the company exceeded 17,500 people, which is more than 15% more than in January of the same year. This means that around 525 people are expected to be affected by the cuts.

Shares of Workday were up about 1% at the market open.

The cuts were not the result of excessive hiring, co-CEOs Anil Bhusri and Carl Eschenbach wrote in a statement Tuesday, and the “majority” will take place in Workday’s technology and product divisions. For the period ending in October 2022, Workday reported a $228 million increase in “employee-related expenses, including stock-based compensation,” which the company said was largely due to headcount growth.

“While our confidence in the fundamentals of our business and future growth prospects remains strong, we continue to operate in a global economic environment that is challenging for companies of all sizes,” the co-CEOs said in a statement.

The company intends to continue hiring through fiscal 2024, executives said.

Employees who lost their jobs will receive three months of severance pay and an additional two weeks of pay for each year of service. The share transfer will last until April 2023, and like many other tech companies that have laid off workers, Workday executives said the company would offer immigration support and additional health benefits for six months.

Bhusri and Eschenbach wrote in a statement that severance packages for international employees will be “similar” to those offered to American employees.

Workday went public in October 2012. At the time, the company had just over 1,600 employees, according to PitchBook.

Source by [author_name]

Previous articleThe End Extinction Campaign is trying to resurrect the drone
Next articleSpotify (SPOT) Q4 2022 Earnings