February 11, 2026 Workday’s CEO Carl Eschenbach is stepping down, less than a week after the enterprise software firm announced layoffs affecting about 400 employees. The company’s executive chair and co‑founder, Aneel Bhusri, will take over as CEO for a fourth time in the leadership reset as Workday recalibrates its strategy in a turbulent tech market.
The changes come at a challenging moment for the company, whose shares are down roughly six per cent on the day and about 43 per cent over the past year. Workday, known for payroll, talent management and expense processing software, says Eschenbach will stay on as a strategic advisor to Bhusri.
Bhusri’s return reunites Workday with its most enduring leader. He co‑founded the company in 2005 and has previously served multiple stints in the top job — as co‑CEO from 2009 to 2014 alongside Dave Duffield, as sole CEO from 2014 to 2020, and again as co‑CEO through 2024. In announcing the leadership transition, Workday cited the emerging era of artificial intelligence and the need for steady leadership. Vice chair Mark Hawkins said Bhusri’s long history with the company and understanding of its culture will be critical as Workday enters what he described as a “defining moment” shaped by AI.
Last week’s layoffs, representing about two per cent of Workday’s workforce, were described by the company as part of a move to realign priorities and resources. Workday did not attribute the cuts to AI disruption, distinguishing them from a larger round of reductions last year that the company linked to a need to invest more heavily in areas including AI. As of Jan. 31, 2025, Workday employed more than 20,400 people.
The move to trim staff comes against a broader backdrop of pressure in the enterprise software sector. Last week’s release of a new industry‑focused Claude Cowork plugin by Anthropic contributed to a sell‑off in software shares, impacting names like Workday, Intuit, Salesforce and LegalZoom.
In comments to CNBC last month, Eschenbach pushed back on fears that AI would undercut Workday’s prospects. Speaking at the World Economic Forum in Davos, he argued that Workday’s strong data foundation and customer trust positioned it to benefit from AI advancements rather than be harmed by them.
