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

Workday is hoping to boost its revenue and margins by using AI agents instead of hiring people, according to its CEO.

After announcing revenue growth, Aneel Bhusri – the company co-founder who was reinstated as CEO in February – said his aspiration is to keep headcount the same while sustaining growth and increasing margins by harnessing AI.

"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."

In its Q1 results ended April 30, 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. 

Bhusri's aspiration to keep headcount flat while increasing revenue and margins follows a roller-coaster ride of public statements on employment plans.

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.

Nonetheless, in September 2025, then CEO Carl Eschenbach seemingly reversed the plan, telling investors it was "consolidating and streamlining the organization model" and did not "need more headcount to drive the business forward."

By February 2026, Eschenbach was out the door as Workday said it would lay off about 2 percent of its staff in a bid to align with its "highest priorities."

Shareholders may be delighted that Workday can now expand without having to increase the size of its workforce. But for a company that relies on organizations hiring people to create demand for its HR software, it seems like a strange example to set. ®