No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Workday announced a leadership change on Monday, with co-founder Aneel Bhusri returning as chief executive officer, as the enterprise software group looked to sharpen its focus on artificial intelligence following a volatile period for the stock and recent workforce reductions.
The company said Bhusri, who currently serves as executive chair, was replacing Carl Eschenbach as CEO with immediate effect as the company started its 2027 financial year.
Eschenbach, who took the top role in 2024 after previously serving as co-CEO, was stepping down from both the executive position and the board, and would remain with the company as a strategic adviser.
The board said the transition came at a pivotal moment for Workday as AI reshaped the software industry.
Lead independent director Mark Hawkins said Bhusri's return would provide continuity of vision and culture as the company positioned itself for what it described as a generational technology shift.
Bhusri said AI represented a larger transformation than software-as-a-service and would define the next wave of market leaders, adding that he was "energised" to lead the next phase alongside presidents Gerrit Kazmaier and Rob Enslin.
Eschenbach, who joined Workday as co-CEO in 2022 before assuming sole leadership, oversaw a period of global expansion and tighter operational discipline, including restructuring efforts to fund AI investment.
Over the last year, the company announced multiple rounds of job cuts, including reductions of about 8.5% in early 2025 and a further 2% more recently, as it sought to realign resources toward priority areas.
He said he was proud of the progress made in scaling the business and laying groundwork in AI.
The leadership change followed a difficult stretch for Workday shares, which had fallen sharply over the past year amid broader pressure on software stocks and investor concerns about how AI could disrupt established software-as-a-service business models.
Shares fell around 5% in early trading following the announcement, according to market reports.
Workday also reaffirmed its 2026 fourth-quarter and full-year outlook, saying results were expected to be in line with guidance issued in November, with the exception of its GAAP operating margin as previously disclosed in a 4 February filing.
The company was scheduled to report full fourth-quarter and year-end results on 24 February.
At 1228 ET (1728 GMT), shares in Workday were down 6.47% in New York at $152.38.
Reporting by Josh White for Sharecast.com.