The short answer
Workday is cutting about 2.5% of its workforce, mainly in its Product and Technology team, according to an 8-K it filed with the SEC on September 29, 2026. Workday gave a percentage, not a headcount. Business Insider put the number at about 500 employees, and The American Bazaar put it at about 525. It is Workday's second round of 2026, after a cut of about 2% in February, per Workday's February 8-K.
What happened
Workday's 8-K, signed by CFO Zane Rowe, says that on September 29, 2026, certain functions within the company announced reorganizations to align team structures with its strategic growth priorities. An 8-K is a form a public company files when something important happens between its regular reports. The plan includes the workforce cut and reductions in some leased office space. The same filing lowered Workday's expected GAAP operating margin for the third quarter and full fiscal year 2027 to reflect the charges, while leaving its other guidance unchanged. Business Insider reported that Workday had more than 21,000 employees at the end of January 2026.
Who is affected
The cuts fall primarily on the Product and Technology team, per the 8-K. Workday said it plans to keep hiring in key strategic areas and locations throughout fiscal 2027, per the filing. The sources used here do not give a split by office or country.
When it takes effect
The 8-K says the employee-related actions are expected to be substantially complete by the first quarter of fiscal 2028, subject to local law and consultation requirements, and the office space actions by the fourth quarter of fiscal 2027. Workday expects to record $55 million to $70 million of the charges in the third quarter of fiscal 2027 and about $10 million in the fourth quarter, per the filing. The American Bazaar reported that Workday expects to release third-quarter results on November 27.
What the company said
Workday said in the 8-K that the reorganizations are meant to better align team structures with its strategic growth priorities. Business Insider reported that Workday did not cite AI as a reason for either 2026 round. Workday's CEO is co-founder Aneel Bhusri, who returned to the role in February 2026, per Business Insider.
Severance and support
The 8-K estimates total charges of $65 million to $80 million. Of that, $40 million to $55 million is future cash spending on severance, employee benefits and related costs, about $10 million is non-cash stock-based compensation, and about $15 million is a non-cash write-down of leased office space. The American Bazaar reported the total as $65 million to $85 million, which does not match the 8-K's $65 million to $80 million. Workday has not published the severance terms for individual employees.
Earlier cuts at Workday
- February 4, 2026: about 2% of the workforce, primarily non-revenue-generating roles in the Global Customer Operations team, with about $135 million in charges, per Workday's 8-K filed that day. Business Insider put the number at about 400 employees. About a week later, CEO Carl Eschenbach left and Bhusri took over, per Business Insider.
- February 5, 2025: about 1,750 employees, roughly 8.5% of headcount, announced in a memo from Eschenbach, per TechCrunch.
Questions people ask
How many people is Workday laying off?
Workday said about 2.5% of its workforce in its September 29, 2026 8-K, without a headcount. Business Insider estimated about 500 employees from the more than 21,000 Workday had at the end of January 2026, and The American Bazaar put it at about 525.
Which Workday teams are affected?
Primarily the Product and Technology team, per the 8-K. Workday said it would keep hiring in key strategic areas and locations through fiscal 2027.
When will the Workday layoffs be complete?
The 8-K says employee-related actions should be substantially complete by the first quarter of fiscal 2028, with most of the charges recorded in the third quarter of fiscal 2027.
How much will the Workday layoffs cost?
$65 million to $80 million in total, per the 8-K, including $40 million to $55 million in cash for severance and benefits, about $10 million in stock-based compensation, and about $15 million in office lease write-downs.
Is this Workday's first layoff in 2026?
No. Workday cut about 2% of its workforce in February 2026, mostly in Global Customer Operations, per its February 4 8-K, and about 1,750 people, or 8.5%, in February 2025, per TechCrunch.