Date – February 10, 2026
Workday has announced another round of workforce reductions, joining a growing list of major employers including Amazon, UPS, and Pinterest that have recently implemented layoffs. The move reflects continued uncertainty in the global labour market and ongoing shifts in corporate priorities.
In a regulatory filing dated February 4, Workday confirmed plans to eliminate approximately 2% of its workforce. The company stated that the restructuring is intended to better align its people and resources with its strategic priorities for fiscal 2027.
Why Is Workday Reducing Its Workforce?
Workday’s decision comes amid ongoing volatility in the labour market. In 2025 alone, more than 1.2 million jobs were lost across multiple industries, highlighting persistent economic and organizational pressures.
This marks the company’s second major restructuring in just over a year. In 2025, Workday reduced its workforce by 8.5%, citing the need to adapt to changing customer demands and market conditions. The latest cuts continue this trend, as the company redirects investment toward areas expected to drive future revenue.
Which Employees Are Affected by the Layoffs?
Based on Workday’s current workforce size, the restructuring is expected to affect approximately 400 employees. The majority of these reductions will occur within the Global Customer Operations team, particularly in roles that are not directly tied to revenue generation.
Despite the layoffs, Workday has indicated that it will continue hiring in strategic areas throughout fiscal 2027. This includes expanding teams focused on sales, product development, and other revenue-generating functions.
When Will the Restructuring Be Completed?
Workday expects the restructuring process to be largely completed by late April 2026. However, the timeline remains subject to local employment laws and consultation requirements in the countries where the company operates.
The company will release its fourth-quarter and full-year financial results on February 24, 2026. These results are expected to reflect approximately $135 million in restructuring and impairment-related charges.
How Much Will the Restructuring Cost?
The total projected cost of the restructuring is estimated at $135 million. A significant portion approximately $80 million relates to impairment charges associated with office space, suggesting a substantial reduction in physical real estate.
These figures indicate that Workday is not only reshaping its workforce but also re-evaluating its long-term operational footprint.
What Does This Mean for Workday’s Customers?
For organizations that rely on Workday’s platform, the reduction in customer operations staff may raise concerns about service levels and response times. The company has not yet provided detailed information on how these changes will affect customer-facing support.
The emphasis on shifting resources away from customer operations and toward revenue-generating areas represents a strategic realignment. Over time, this approach may influence how Workday engages with and supports its existing clients.
What Should HR Leaders Be Watching For?
HR leaders using Workday’s systems should monitor how these changes affect service quality, implementation timelines, and ongoing support. Any reduction in customer operations capacity may have downstream impacts on system performance and user experience.
It is also important to note that Workday has cautioned that the restructuring may not deliver its anticipated benefits. Actual costs could exceed current estimates, and the final timeline will depend on compliance with employment regulations in multiple jurisdictions.
Affected by Workday’s Layoffs? Whitten and Lublin can help…
If your position at Workday has been impacted by the recent restructuring, you may be entitled to more than what your employer initially offers. In Ontario, severance entitlements depend on factors such as your age, length of service, position, and overall compensation. In many cases, employees affected by large-scale layoffs are entitled to significantly more under common law than the minimum amounts set out in a termination package.
At Whitten & Lublin Employment Lawyers, we help employees review severance offers, identify potential risks in termination agreements, and negotiate fair compensation. Before accepting any offer, contact us at (416) 640-2667 or reach out online to understand your legal options.
