Feb 9 (Reuters) – Workday said on Monday co-founder Aneel Bhusri will return as the company’s CEO, replacing Carl Eschenbach, as the human resources software provider looks to leverage artificial intelligence and shore up demand.
Shares of the company fell 5% in early trading after the announcement, which is effective immediately.
Workday has been navigating an increasingly consolidated industry with larger rivals using their strong balance sheets to buy out smaller firms and grow market share while enterprises tighten certain tech budgets owing to economic uncertainty.
“AI is a bigger transformation than SaaS (software as a service) — and it will define the next generation of market leaders. I’m energized to return as CEO,” Bhusri said in a statement.
The company in September announced a deal to buy AI firm Sana for about $1.1 billion as it pushes to stay competitive.
Around the same time, activist investor Elliott Management unveiled a stake of more than $2 billion in Workday and lauded its leadership, citing the HR firm’s strong progress in recent years.
Up to last close, the company’s shares had fallen over 24% this year after slumping nearly 17% in 2025, signaling waning investor confidence in the firm’s growth strategy.
Last week, the firm said it would cut around 2% of its workforce and expected fiscal fourth-quarter and full-year financial results to be in line with the forecast provided in November with the exception of operating margin.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Leroy Leo and Maju Samuel)
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