Share Workday has announced that co-founder Aneel Bhusri will return as Chief Executive Officer, replacing Carl Eschenbach with immediate effect as the human capital and financial software firm pivots more aggressively toward artificial intelligence (AI) and navigates mounting industry pressures. Bhusri, a veteran leader and one of the architects of Workday since its founding in 2005, said AI represents a transformation “bigger than SaaS,” positioning it as central to defining the next generation of market leaders as the company refocuses its strategy. The leadership change comes amid a period of heightened competition, tighter enterprise technology spending and broader industry consolidation that has put pressure on growth momentum for software firms. Workday’s shares fell roughly 5% in early trading following the CEO transition, adding to a broader share decline over the past year and reflecting market concerns about the company’s direction and performance. In recent months, Workday has taken several significant strategic steps under its AI-led agenda. The company announced a roughly $1.1 billion acquisition of AI firm Sana, underscoring its commitment to integrating advanced machine learning capabilities into its platform. Meanwhile, activist investor Elliott Management disclosed a stake of more than $2 billion in the company, signaling intensified investor scrutiny amid calls for sharper execution and enhanced shareholder value. The organisational reset also includes workforce changes, with Workday planning to reduce about 2% of its global headcount. The company has maintained its revenue guidance in line with prior forecasts, even as it adjusts operating plans to balance investment in innovation with operational discipline. Eschenbach, who had been serving as CEO since early 2024 after previously acting as co-CEO alongside Bhusri, will transition out of the role as part of the leadership change. Bhusri’s return to the top job is viewed by the board as a move to leverage his deep institutional knowledge and leadership experience to steer Workday through its next chapter of technology-driven evolution and growth.
