Workday cuts about 2.5% of workforce, expects $65 million to $80 million in charges
Workday reiterated its fiscal 2027 third-quarter and full-year guidance from August 27, 2026, except for GAAP operating margin, which it now expects to be roughly 20 to 21 percentage points below non-GAAP margin in the third quarter and about 19 points below for the full year. The company is reducing about 2.5% of its workforce, mainly in Product and Technology, and reducing leased office space, with charges of $65 million to $80 million that shareholders will see in GAAP results.
Key points
- Reorganizations announced September 29, 2026 include a reduction of about 2.5% of current workforce, mainly in Product and Technology.
- Charges of $65 million to $80 million: about $55 million to $70 million in fiscal Q3 and $10 million in fiscal Q4 2027.
- Charges include $40 million to $55 million in cash severance and benefit costs, about $10 million in stock-based compensation, and about $15 million in office space impairment.
- Employee actions are expected to be substantially complete by Q1 fiscal 2028; office actions by Q4 fiscal 2027.
The filing
Written by AI on Nov 8, 2026, 1:30 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on September 29, 2026.
Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.