Workday, Inc. [WDAY] - restructuring charges
Workday, Inc. expects to incur approximately $65 million to $80 million in restructuring charges, with $55 million to $70 million recognized in Q3 FY2027, primarily due to a 2.5% workforce reduction and office space reductions.
Why this matters
Workday, Inc., a Delaware-based company specializing in computer processing and data preparation services, has announced a restructuring plan aimed at better aligning its team structures with strategic growth priorities. This plan includes a reduction of approximately 2.5% of its workforce, primarily within the Product and Technology team, and reductions in select leased office spaces. Workday expects to incur restructuring charges between $65 million and $80 million, with $55 million to $70 million recognized in the third quarter of fiscal 2027. These charges will cover severance payments, employee benefits, stock-based compensation, and impairment of leased office space. The employee-related actions are expected to be completed by the first quarter of fiscal 2028, while the office space reductions should be completed by the fourth quarter of fiscal 2027.