Workday Cuts 2% of Workforce as Tech Layoffs Continue in 2026

The tech industry's wave of layoffs continues into 2026, with enterprise software company Workday announcing plans to cut approximately 400 employees, representing about 2% of its workforce. The cuts, primarily affecting customer-facing roles, come as the company seeks to realign resources toward priority areas.

The announcement follows a pattern seen across the technology sector, where companies are reassessing their workforce needs amid shifting market conditions and strategic priorities. Workday stated that the restructuring will enable it to invest more heavily in areas it considers critical for future growth.

This move places Workday among numerous tech companies that have announced workforce reductions in recent months. The enterprise software sector has been particularly active in restructuring efforts as companies navigate competitive pressures and evolving customer demands in the AI-driven business landscape.

Workday's decision reflects broader industry trends where companies are balancing the need to maintain customer relationships while simultaneously investing in new technologies and capabilities. The focus on customer-facing roles suggests the company is looking to optimize its go-to-market strategy while potentially shifting resources toward product development and AI initiatives.

The timing of Workday's announcement coincides with several other significant tech industry developments, including major earnings reports from companies like Alphabet, Uber, and Qualcomm, as well as substantial funding rounds for AI startups like ElevenLabs and Cerebras Systems.

As the tech sector continues to evolve rapidly, workforce adjustments like these are likely to remain a feature of the industry landscape as companies seek to position themselves for growth in an increasingly competitive and AI-centric market environment.