Workday: CEO Carl Eschenbach Exits Amid Workforce Cuts

Workday has announced a significant leadership change as CEO Carl Eschenbach steps down after steering the company through a period of growth and operational transformation.

The transition, effective 9 February 2025, sees Co-Founder Aneel Bhusri return to the chief executive role as the enterprise AI platform for human capital management navigates strategic workforce reductions.

Carl is leaving his position as CEO and as a member of the board after leading the company through expanded industry focus and operational discipline, according to Workday. He will remain with the organisation as Strategic Advisor to the CEO to support Aneel through the transition.

Announcing the move on LinkedIn, he said: "When I first joined, I knew we had a massive opportunity to take this great company and scale it for the global stage. I am proud of what this team has accomplished together.

"We've strengthened operations, expanded into critical new markets and grown a world-class partner ecosystem. Most importantly, our Workmates have positioned the company to lead as an enterprise AI platform."

Aneel Bhusri returns as CEO

The appointment marks a return to familiar territory for Aneel, who founded Workday alongside Dave Duffield in 2005. The pair, both former PeopleSoft executives, established the company to provide cloud-based applications for financial management and human capital management.

Workday's Vice Chair and Lead Independent Director Mark Hawkins said in a company statement: "Aneel and Dave Duffield founded Workday with a belief that work could be done differently, and they built one of the most innovative companies in enterprise software.

"As we enter a defining moment shaped by AI, there is no one better than Aneel to lead this next chapter. His vision, conviction and deep connection to Workday's culture will position the company to continue to lead in a changing landscape."

Sharing the news on LinkedIn, Aneel said: "It is both humbling and energising to step back into this role at such a pivotal time for our company and our industry. AI is reshaping how work gets done and represents an even bigger transformation than the shift to cloud in 2005.

"Just as we helped redefine enterprise software when we founded Workday, I believe we can once again lead the way in this AI era."

Aneel added that the company is now opening chapter four: "With 20 years of trusted data and process history, we know how decisions flow, how policies are applied and how work really gets done.

"That deep expertise uniquely positions us to turn generic intelligence into enterprise-grade intelligence and everyone who relies on Workday."

Workforce reductions announced alongside transition

The leadership change comes as Workday plans to cut around 400 employees from its workforce, focusing on "non-revenue generating" customer roles, according to a regulatory filing. The restructuring affects approximately 2% of Workday's total workforce as the company repositions itself for growth in the AI-driven enterprise software market.

According to the company, these cuts will help Workday better invest in its priority areas, but will lead to significant short-term costs.

"Workday estimates that it will incur approximately US$135m in charges... consisting of approximately US$40m of future cash expenditures related to severance payments, employee benefits and related costs, and approximately US$15m in non-cash charges for stock-based compensation."

Carl said in a note to employees at the time: "We have so much opportunity ahead of us, especially with the potential of AI, and we have a strong foundation to build upon."