--- title: "Workday Cuts 400 Jobs as Software Stocks Reel from AI Fears" canonical: "https://www.metaintro.com/blog/workday-layoffs-400-jobs-february-2026" language: "en" author: "laceykaelani" published: "2026-02-09T11:30:00.000Z" modified: "2026-10-02T19:15:39.115Z" --- [Back to Blog](/blog) [Information](/blog/tag/information)[News](/blog/tag/news)[Layoffs](/blog/tag/layoffs) # Workday Cuts 400 Jobs as Software Stocks Reel from AI Fears Workday announces 400 layoffs — its second major reduction in a year — as software stocks face unprecedented selling pressure amid AI disruption concerns. [![Lacey Kaelani](https://cdn.metaintro.com/rs:fill:40:40/q:72/plain/images/2934b90b-ca20-4439-bc56-71b4f5733545_1766029465094.png)Lacey Kaelani @laceykaelani](/blog/author/laceykaelani) [February 9, 2026](/blog/archive/2026/02)Updated October 2, 20266 min read ![Workday Cuts 400 Jobs as Software Stocks Reel from AI Fears](https://cdn.metaintro.com/rs:fill:1200:675/q:78/plain/images/office-80.png) [https://x.com/intent/tweet?text=Workday%20Cuts%20400%20Jobs%20as%20Software%20Stocks%20Reel%20from%20AI%20Fears&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fworkday-layoffs-400-jobs-february-2026](https://x.com/intent/tweet?text=Workday%20Cuts%20400%20Jobs%20as%20Software%20Stocks%20Reel%20from%20AI%20Fears&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fworkday-layoffs-400-jobs-february-2026)[http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fworkday-layoffs-400-jobs-february-2026](http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fworkday-layoffs-400-jobs-february-2026)[https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fworkday-layoffs-400-jobs-february-2026&title=Workday%20Cuts%20400%20Jobs%20as%20Software%20Stocks%20Reel%20from%20AI%20Fears](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fworkday-layoffs-400-jobs-february-2026&title=Workday%20Cuts%20400%20Jobs%20as%20Software%20Stocks%20Reel%20from%20AI%20Fears)[mailto:?subject=Workday%20Cuts%20400%20Jobs%20as%20Software%20Stocks%20Reel%20from%20AI%20Fears&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fworkday-layoffs-400-jobs-february-2026](mailto:?subject=Workday%20Cuts%20400%20Jobs%20as%20Software%20Stocks%20Reel%20from%20AI%20Fears&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fworkday-layoffs-400-jobs-february-2026) ## Workday Cuts 400 Jobs as Software Stocks Reel from AI Fears Workday announced on February 4, 2026 that it will eliminate approximately **400 jobs** — about 2% of its workforce — as the HR and finance software giant continues restructuring amid a brutal selloff in enterprise software stocks. According to [a securities filing](https://www.tipranks.com/news/company-announcements/workday-announces-workforce-restructuring-and-related-impairment-charges), the cuts will primarily affect non-revenue-generating roles within Workday's Global Customer Operations organization. The company framed the move as an effort to "realign its resources" with strategic priorities. This marks Workday's second major workforce reduction in just over a year. In February 2025, the company [cut roughly 1,750 positions](https://fortune.com/2025/02/07/workday-layoff-ai-future-of-work/) — about 8.5% of its workforce — citing plans to prioritize "innovation investments like AI." The restructuring carries [approximately $135 million in charges](https://www.theregister.com/2026/02/04/workday_layoffs_400_jobs/), including $40 million in severance and benefits, $15 million in stock compensation expenses, and about $80 million in non-cash charges. ## Customer Support Takes the Hit The job cuts will fall hardest on [non-revenue-generating roles within Global Customer Operations](https://www.bloomberg.com/news/articles/2026-02-04/workday-to-cut-about-400-employees-focused-on-customer-support), according to Bloomberg. Meanwhile, Workday says it will continue targeted hiring across strategic, revenue-generating areas. [TechRepublic reports](https://www.techrepublic.com/article/news-workday-cuts-400-jobs/) the move signals a pivot toward higher-priority initiatives for fiscal 2027, as the company responds to customer spending scrutiny. As of January 2025, Workday's global workforce consisted of [over 20,400 employees in 34 countries](https://www.theregister.com/2026/02/04/workday_layoffs_400_jobs/), with approximately 63% located in the U.S. After this round of cuts, headcount will drop to roughly 20,000. ## Software Stocks Under Siege The layoffs come as AI developments rattle software investors. [Workday shares have fallen about 34%](https://dnyuz.com/2026/02/05/workday-cuts-400-jobs-amid-software-stock-meltdown/) from a year ago, reflecting broader concerns about how artificial intelligence might disrupt traditional enterprise software. In January 2026, [WDAY dropped 4.2% to $205.79](https://ts2.tech/en/workday-stock-wday-drops-4-to-205-as-software-names-slide-in-2026-debut/) on the first trading day of the year, tracking weakness across enterprise software. Salesforce fell 4.26% and ServiceNow slipped 3.75% on the same day. The stock has fallen far from its [all-time high of $307.21](https://www.macrotrends.net/stocks/charts/WDAY/workday/stock-price-history) reached in February 2024. As of mid-January 2026, shares traded around $186.86. Bloomberg analyst Dan Ives said he's ["never seen a software selloff like this,"](https://ts2.tech/en/workday-stock-bounces-as-software-selloff-cools-but-ai-worries-still-hang-over-wday/) describing a "trillion-dollar tech wipeout" ensnaring all stocks in AI's path. ## CEO Pushes Back on AI Fears Workday CEO Carl Eschenbach has pushed back against the narrative that AI threatens the company's business model. ["AI is a tailwind, not a headwind"](https://www.cnbc.com/2026/01/22/workday-ceo-ai-software-selloff.html) for Workday, Eschenbach told CNBC, calling concerns that artificial intelligence is destroying software "overblown." CFO Zane Rowe projected fiscal 2026 subscription revenue of [$8.828 billion](https://ts2.tech/en/workday-stock-bounces-as-software-selloff-cools-but-ai-worries-still-hang-over-wday/), with a non-GAAP operating margin near 29%. However, [investors remain skeptical](https://ts2.tech/en/workday-stock-bounces-as-software-selloff-cools-but-ai-worries-still-hang-over-wday/), demanding evidence that new AI features boost renewals and stabilize margins. If clients pull back on hiring or cut IT spending, HR and finance platforms like Workday won't escape unscathed. ## Financial Impact of Restructuring The $135 million restructuring charge breaks down as follows, according to [Workday's SEC filing](https://www.tipranks.com/news/company-announcements/workday-announces-workforce-restructuring-and-related-impairment-charges): - **$40 million** in future cash expenditures for severance and employee benefits - **$15 million** in non-cash charges for stock-based compensation - **$80 million** in additional non-cash charges Workday expects [GAAP operating margins](https://www.investing.com/news/stock-market-news/workday-to-cut-400-jobs-about-2-of-workforce-93CH-4486287) to be 24 to 25 percentage points lower for the quarter and 22 to 23 percentage points lower for the full fiscal year due to the restructuring. Updated figures will be reflected in the company's next earnings announcement on February 24. For comparison, last year's layoffs of 1,750 employees [cost between $230 million and $270 million](https://www.channelfutures.com/cloud/workday-layoffs-1750-support-ai-investment), with $60-70 million in charges in the fourth quarter and $145-175 million in severance. ## AI Discrimination Lawsuit Adds Pressure Beyond financial challenges, Workday faces legal headwinds. The company is dealing with [a class-action lawsuit](https://www.theregister.com/2026/02/04/workday_layoffs_400_jobs/) alleging its AI-powered tools discriminate against job candidates based on race, age, and disability. Workday has said the case is without merit and denies the allegations. But the lawsuit underscores broader concerns about AI implementation in HR technology — the very space Workday occupies. ## What This Means for Tech Workers For professionals in enterprise software and SaaS, the Workday layoffs signal continued turbulence: **Customer-facing roles are vulnerable.** Both Workday layoff rounds targeted non-revenue roles, particularly customer support and operations. Companies are increasingly automating these functions. **Software isn't immune to AI disruption.** Despite CEO optimism, investors are pricing in the possibility that AI tools could reduce demand for traditional enterprise software or allow competitors to undercut pricing. **Second layoffs within a year matter.** When a company announces significant cuts twice in 12 months, it signals ongoing structural challenges rather than one-time adjustments. According to [TrueUp's layoff tracker](https://www.trueup.io/layoffs), 2026 has already seen 66 layoffs at tech companies affecting 27,348 workers — averaging 760 per day. ## Analyst Outlook Despite the turbulence, some analysts remain cautiously optimistic. According to [WallStreetZen](https://www.wallstreetzen.com/stocks/us/nasdaq/wday/stock-forecast), 25 Wall Street analysts have an average WDAY price target of $272.80, with the highest forecast at $315 and the lowest at $235. This suggests a potential upside of 31% from current levels — but only if Workday can demonstrate that AI investments translate to customer value and revenue growth. ## People Also Asked **Q: How many employees does Workday have after layoffs?** A: After cutting 400 jobs (about 2% of workforce), Workday will have roughly **20,000 employees** remaining. This follows 1,750 cuts in February 2025. The company has over [20,400 employees across 34 countries](https://www.theregister.com/2026/02/04/workday_layoffs_400_jobs/), with 63% in the U.S. **Q: Why is Workday stock falling?** A: [WDAY has dropped 34%](https://dnyuz.com/2026/02/05/workday-cuts-400-jobs-amid-software-stock-meltdown/) from a year ago due to: broader software sector selloff driven by AI disruption concerns, investor skepticism about enterprise software valuations, and now a second round of layoffs in 12 months. The stock fell from an all-time high of $307 to around $186-207. **Q: Is Workday laying off in 2026?** A: Yes. On February 4, 2026, Workday announced [approximately 400 job cuts](https://www.bloomberg.com/news/articles/2026-02-04/workday-to-cut-about-400-employees-focused-on-customer-support), primarily in customer support and non-revenue-generating roles. This follows 1,750 layoffs announced in February 2025. --- Looking for your next opportunity? 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