Workday, Inc. (WDAY): restructuring charge — Workday to cut ~2% of workforce, take $135M charge in Q4 FY2026; GAAP margin to drop 24-25 pts

Workday, Inc.

Elimination of ~2% of workforce, primarily non-revenue generating roles in Global Customer Operations.
Estimated $135M charge in Q4 FY2026: $40M cash severance, $15M stock-based comp, $80M office-space impairment.
GAAP operating margin expected to be 24-25 percentage points lower than non-GAAP for Q4; 22-23 pts for full year.
Actions expected to be substantially complete by Q1 FY2027; company to continue hiring in strategic areas.
Preliminary Q4 and full-year results otherwise in line with prior guidance; earnings call on Feb 24, 2026.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Workday, Inc. announced a impairment with charges of approximately $80 million affecting certain office space and long-lived assets.

Type: impairment
Charge: approximately $80 million
Affected area: certain office space and long-lived assets

Exact text from the filing

Workday estimates that it will incur approximately $135 million in charges which are expected to be recognized in the fourth quarter of fiscal 2026, consisting of approximately $40 million of future cash expenditures related to severance payments, employee benefits, and related costs and approximately $15 million in non-cash charges for stock-based compensation. The charges also consist of approximately $80 million in non-cash charges related to the impairment of certain office space and long-lived assets.

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Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Workday, Inc. announced a restructuring with charges of approximately $135 million affecting Global Customer Operations team (approximately 2% of Workday’s current workforce).

Type: restructuring
Charge: approximately $135 million
Affected area: Global Customer Operations team
Headcount: approximately 2% of Workday’s current workforce

Exact text from the filing

its fiscal 2027, including additional revenue-generating areas to meet its market opportunity. In connection with the above, Workday estimates that it will incur approximately $135 million in charges which are expected to be recognized in the fourth quarter of fiscal 2026, consisting of approximately $40 million of future cash expenditures related to severance

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Workday, Inc. filing history →

Source: SEC EDGAR

accession 0001327811-26-000004

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