Enterprise HR software giant Workday has announced the layoff of 1,750 employees, making it the latest tech company to implement job cuts in response to shifting market conditions. The layoffs, representing approximately 8.5% of Workday’s total workforce, were first reported by Bloomberg and later confirmed by TechCrunch.

Unlike major tech firms such as Meta and Microsoft, which have conducted multiple rounds of layoffs in recent years, Workday had largely avoided drastic workforce reductions until now. However, CEO Carl Eschenbach acknowledged in an internal memo to employees that the company needs to adopt a new approach to navigate the current market landscape. Despite the job cuts, Workday still intends to hire AI talent, signaling a strategic pivot towards emerging technologies.

Workday's announcement comes amid a broader wave of layoffs sweeping the tech industry. Identity management company Okta cut 180 jobs on Tuesday, while autonomous vehicle firm Cruise slashed 50% of its workforce on the same day. Meanwhile, Amazon recently reduced staff in its sustainability division, reflecting a wider trend of companies reassessing their priorities and workforce needs.

The layoffs highlight ongoing turbulence in the tech sector as companies adjust to economic uncertainties, shifting business models, and the increasing emphasis on artificial intelligence. Workday’s move suggests that even enterprise software firms, which provide critical HR and financial solutions to businesses, are not immune to these industry shifts.

While it remains unclear how Workday’s restructuring will impact its operations, the company’s commitment to AI hiring indicates a growing focus on automation and advanced technologies. As the tech industry continues to evolve, businesses will likely continue balancing workforce reductions with strategic investments in innovation.