Workday Axes 400 To Serve AI Gods, Claims 'Realignment' Not Robot Uprising
KEY POINTS
- •Workday announced layoffs of about 400 employees, roughly 2% of their workforce, mainly customer-service roles worldwide.
- •The company said the cuts support realigning resources while continuing to hire strategically, despite shares dropping 34% over the past year.
- •Workday also faces a class-action lawsuit alleging AI discrimination against candidates based on race, age, and disability, which they deny.
In a stunning episode of "Corporate Layoffs Meet AI Paranoia," California's payroll and expense overlords at Workday decided to fire about 400 — roughly 2% of their 20,400-strong workforce as of January 31, 2025 — mostly customer service staff who apparently generate less revenue than an overenthusiastic vending machine. This move emerged smack dab in the middle of shares tanking 34% year-over-year, thanks partly to AI newbies like Anthropic unleashing their Claude Cowork plugin, which investors love to hate more than gluten at a carb convention. Workday claims it’s just 'realigning priorities' and not scared of AI (wink), while juggling a spicy lawsuit alleging their AI discriminates against humans based on race, age, and disability. No comment from spokespeople, only the silent screams of laid-off humans and the creeping mechanical overlords lurking behind their payroll software. Next up: robots negotiating salaries while firing people? Stay tuned.
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Source: Businessinsider | Published: 2/5/2026 | Author: Sarah E. Needleman