Workday, the payroll and HR company based in Pleasanton, announced on Wednesday that it is cutting 8.5 percent of its workforce, citing AI as a key reason to let human employees go.

Workday has announced plans to cut 1,750 jobs. The cuts amount to 8.5% of the Pleasanton-based HR and employee management platform’s total workforce. According to an open letter from Workday CEO Carl Eschenbach addressed to “Workmates,

However, the layoffs will make Workday’s fourth quarter operating margin under Generally Accepted Accounting Principles (GAAP) 22 to 23 percentage points lower than its fourth quarter non-GAAP operating margin and its fiscal 2025 full-year GAAP operating margin 21 percentage points lower than its full-year non-GAAP operating margin.