Workday wants AI to punch in instead of having to hire new recruits

Workday expects to boost revenue and margins by using AI agents rather than adding employees. The CEO wants continued growth while keeping headcount close to flat for the year, citing benefits from using Workday’s own products and other AI tools. In the most recent quarter ended April 30, Workday reported net profit of $222 million compared with $68 million a year earlier, when restructuring expenses affected results. Revenue for the quarter was $2.54 billion, up 13.5% year-on-year. Results exceeded market expectations, and Workday forecast higher margins for the rest of the year, lifting shares after hours. Prior employment plans included workforce reductions and later statements about rehiring with different roles.

""I'd love to see us continue the growth that we had in Q1, but keep headcount as close to flat for the year as possible because we are getting the benefits of using our own products and other AI tools. That's where I'm hopeful and believe that we're going to have additional margin expansion as we get those benefits. That's different than what my view was coming in three months ago.""

"Workday recorded net profit of $222 million versus $68 million in the prior year, when the bottom line was hit by restructuring expenses. Revenue generated for the three months was $2.54 billion, up 13.5 percent year-on-year. The results beat market expectations and Workday forecast higher margins for the rest of the year, sending its share price up 10 percent in after-hours trading."

"In February 2025, Workday announced an 8.5 percent cut to its global workforce - 1,750 positions - as it "intended to prioritize its investments and continue advancing Workday's ongoing focus on durable growth," an SEC filing said. In June 2025, CFO Zane Rowe told an investment conference that the SaaS biz planned to rehire the same number of people, although with different roles."

""We will be hiring back. We wanted to make sure everyone understood that this is not us reducing," he said."

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