Workday announces 2.5% workforce reduction while reiterating its fiscal 2027 full year guidance

Workday announced a strategic reorganization to align its team structure with growth priorities, involving a headcount reduction and office space consolidations. The company reiterated its fiscal 2027 third quarter and full-year revenue and non-GAAP operating margin guidance, though GAAP margins will be impacted by one-time restructuring costs.

Key Highlights

• Workforce reduction of approximately 2.5% focused primarily on Product and Technology teams.
• Estimated restructuring charges between $65 million and $80 million, with up to $70 million to be recognized in the third quarter of fiscal 2027.
• GAAP operating margin for the third quarter of fiscal 2027 is expected to be 20 to 21 percentage points lower than the non-GAAP margin due to reorganization activities.