Workday reorganizes teams, cuts workforce about 2.5%
WDAY•Workday launched a reorganization aligned with strategic growth priorities that includes cutting about 2.5% of its workforce. It estimates restructuring charges of $65 million to $80 million, mostly in fiscal 2027 Q3.
1. Workforce changes
Workday said the reorganization includes workforce reductions of about 2.5%, largely in its Product and Technology organization, and select cuts to leased office space.
2. Restructuring costs
The company estimates charges of $65 million to $80 million. It expects $55 million to $70 million in fiscal 2027 Q3, with the remaining charges in Q4; the total includes $15 million of non-cash lease-impairment charges. Workday expects fiscal 2027 Q3 GAAP operating margin to trail non-GAAP operating margin by about 20 to 21 percentage points due to the actions.
