WDAY Announces Reorganization, 2.5% Workforce Reduction; Updates Q3, FY27 GAAP Operating Margin Guidance
· The NYC Memo
Workday, Inc. announced a reorganization on September 29, 2026, including a reduction of approximately 2.5% of its workforce and select leased office space reductions. The company expects to incur $65 million to $80 million in total charges, with $55 million to $70 million in Q3 fiscal 2027 and $10 million in Q4 fiscal 2027.
These activities led Workday to update its fiscal 2027 third quarter GAAP operating margin guidance to be approximately 20 to 21 percentage points lower than non-GAAP, and full-year GAAP operating margin to be approximately 19 percentage points lower than non-GAAP.