Workday is restructuring, cutting 8.5% of its workforce, or about 1,750 positions, to invest in its Agent System of Record platform, designed for managing AI agents. CEO Carl Eschenbach noted that this decision aligns with current commercial demands and allows for strategic hiring in targeted areas. The restructuring costs are projected to reach up to $270 million and emphasize the need to ensure responsible integration of AI in businesses, as evidenced by the rising interest from major partners like IBM and Google Cloud.
The platform - designed to securely onboard and manage an org's AI agents - was released a fortnight ago, and the exec says there's been a surge in interest from customers and other tech vendors it has allied with, including IBM, Google Cloud, and Salesforce.
It is essential for Workday to be "able to invest back in" any money saved on staffing costs "specifically into the product and technology organization around our Agent System of Record."
Customers "who want to build agents," he said, "understand there is a risk of them entering the enterprise in an uncontrolled way."
The cost of the restructuring expenses is estimated at up to $270 million in total, both in terms of cash expenditure and non-cash charges.
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