Workday cuts ~2.5% of workforce; takes $65-80M restructuring charge, trims GAAP margin outlook

Workday, Inc.

Reduction of ~2.5% of current workforce, primarily within the Product and Technology team, plus select leased office space reductions.
Expects $65-80M total charges: $55-70M in Q3 FY2027 and $10M in Q4 FY2027, including $40-55M of cash severance, benefits and related costs.
Charges also include ~$10M non-cash stock-based compensation and ~$15M non-cash impairment of certain leased office space.
Q3 FY2027 GAAP operating margin now ~20-21 points below non-GAAP; FY2027 GAAP margin ~19 points below non-GAAP; all other guidance reiterated from the Aug 27, 2026 call.
Employee actions expected substantially complete by Q1 FY2028, office-space actions by Q4 FY2027; Workday plans to keep hiring in key strategic areas.

This headline and bullets were generated automatically by deepseek-v4.1-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.