Workday shifts focus to AI, lays off 8.5% of global workforce
Workday Reveals Its New AI Initiative As we continue to see the merger of modern tech and business, Workday has responded with its new foray into artificial intelligence (AI). A move it positions as necessary to meet growing demand for intelligence in the enterprise software market — but which clearly presents Salesforce with a significant challenge, since around 8.5% of its global headcount is being cut yet more than 9,000 workers from out-of-date roles are simultaneously being retrained and redeployed in new ones within just two years (which will surely be some task).
Why Make the Move
Given the proliferation of AI in businesses, Workday is trying to be as relevant by mustering all its resources and acumen around this technological phenomenon. The overdrive towards AI is not a fine fashion but rather an overarching attempt to improve the product offerings and making sure they are competitive in modern software industry. For Workday, AI is all about deeper analytics and faster experience as they create a new frontier for their clients.
Impact on the Workforce
Chances are that had to be a challenging decision — cutting part of its workforce for whatever reason, an inevitable byproduct of businesses needing to adapt and change along with market demands. Considering the large number of its employees, these job cuts are expected to help Amazon free up budget which will be directed towards newly developed AI products and improved current offerings.
This obviously places those impacted by the layoffs in a precarious position, but Workday has said that it plans on providing assistance to its staff as they navigate through this transition and will also offer severance packages along with help finding new jobs.
Looking Forward
Despite the short term pain that will accompany this, Workday has a future of innovation and expansion. The enterprise wants to win in the market by leveraging AI and aiming at creating additional value for their users. It has also the potential to over time give rise for fresh roles and new opportunities in tech as businesses continue refining their edges.
These are some of the reasons why Workday's movement to AI is an important move in a future-fast changing tech market. While the layoffs hurt, they are part of a greater plan to ensure that company is still important 10 or 20 years from now. As the world has become more dominated by tech, that means companies like Workday need to evolve or die.
