Workday is doubling down on its AI future, with CEO Carl Eschenbach confirming that the recent workforce restructuring, which resulted in the elimination of approximately 1,750 positions, was at least partly a result of AI’s impact on the business. The savings generated from these layoffs will be funneled into the further development of Workday’s Agent System of Record platform, according to company leadership.
In an earnings call discussing the latest financial results, Eschenbach emphasized the importance of reinvesting staffing cost savings into the product and technology organization, specifically focusing on the Agent System of Record. This platform, launched a fortnight ago, is designed to securely onboard and manage an organization’s AI agents.
The platform has already garnered significant interest from customers and technology partners, including IBM, Google Cloud, and Salesforce. Eschenbach noted that customers “who want to build agents… understand there is a risk of them entering the enterprise in an uncontrolled way.”
“So, there’s no doubt this investment is required because of the demand we’re seeing. It’s also required on the go-to-market side, where we’re going to continue to invest to be able to take the Agent System of Record along with all of our role-based agents deeper into the enterprise,” noted Eschenbach.
Workday’s restructuring efforts are estimated to cost up to $270 million, encompassing both cash expenditures and non-cash charges. While the exact amount Workday anticipates saving from these measures has not been disclosed, the allocation of resources highlights the company’s strategic shift.
Workday is itself rolling out role-based agents for various functions including contracts, payroll, financial auditing, and policy. Eschenbach highlighted the differences between these agents and others in the market, saying, “These are not task-based agents like most of the market today. Our role-based agents contain a configurable set of skills that give them greater ability to support people in their roles.”
These role-based agents are capable of performing multiple tasks. Eschenbach assured analysts that the “true ROI” resides here, and that is where the company sees customers “willing to pay.”
With the proliferation of AI agents in the market, organizations face potential challenges such as fragmented operations, increased security risks, and difficulties in accurately assessing the value of their AI investments. Workday’s Agent System of Record aims to provide a centralized solution to manage an organization’s entire fleet of AI agents alongside its human workforce. According to the company, the platform will not be limited to just managing Workday agents.
While some experts predicted wider job losses from AI, the Bureau of Labor Statistics data from this week reveals that the changes so far at Workday have been directly tied to eliminating 1,750 positions. For fiscal year 2025, the company reported a revenue of $8.44 billion, a 16.4 percent year-on-year increase, with subscription revenue contributing $7.71 billion. Operating profit also increased, reaching $415 million, up from $183 million.
