Workday, a leading enterprise HR software company, has made the decision to lay off 1,750 employees, roughly 8.5% of its workforce, in a bid to realign its business strategy. This marks the company’s first significant workforce reduction as it navigates changing market conditions. The layoffs, confirmed by TechCrunch after initial reports from Bloomberg, are part of a broader plan to hire artificial intelligence (AI) talent, signaling a shift towards automation and emerging technologies.

In contrast to tech giants like Meta and Microsoft, which have conducted multiple rounds of layoffs in recent years, Workday has largely avoided large-scale job cuts. However, CEO Carl Eschenbach addressed the decision in an internal memo, emphasizing the importance of adapting to the evolving business environment.

Workday’s announcement comes amid a wave of layoffs across the tech sector. Companies like Okta, Cruise, and Amazon have also announced job cuts, highlighting a reassessment of business priorities. This trend reflects the ongoing turbulence in the tech industry, where companies are balancing financial sustainability with investments in next-generation technologies.

The decision by Workday underscores a broader shift within the enterprise software industry, as companies realign their workforce to prioritize AI-driven innovation. While the layoffs reflect the ongoing challenges in the sector, Workday’s focus on AI hiring indicates a strategic pivot rather than financial distress, in line with the industry’s move towards an AI-dominated future.