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On Tuesday the co-CEOs of US software provider Workday announced the dismissal of approximately 552 workers of your company, which is equivalent to 3% of your workforce. Now the company joins the wave of cuts caused by the economic instability affecting the country.
Company representatives Carl Eschenbach and Aneel Bhusri informed their former employees that “although our confidence in the fundamentals of our business and prospects for future growth remain strong, We continue to operate in a challenging global economic environment for companies of all sizes”, they expressed.
Many companies in the technology area have decided this year to reduce their workforce, such is the case of Google with more than 12,000 unemployed, 6% of its payroll. In 2022, the number of employees at Workday increased by 15% however, at the beginning of the year, the company decided to restructure its work teams
“It has been a difficult decision to remove roles that affect approximately 3% of our workforce global, and most occur in our Products and Technology organization,” company representatives said, while assuring that these layoffs are not the product of a huge hiring last year.
In the statement Eschenbach and Bhusri indicated that, “we realize that this news raises many questions, including what will happen in the future. These moves are not the result of over-hiring, in fact, We plan to increase the size of our global workforce in fiscal year 24. Based on what we know today, we have no plans to take a similar action of this size in the foreseeable future.”
In recent months, the unemployment rate has risen in the country, especially in the technology industry, and it is expected that by 2023 that rate will continue to rise. Microsoft for example; announced this month that it expects more than 10,000 layoffs for March. For its part, Amazon also reported that it will eliminate 18,000 jobs.
Large companies have decided to cut their expenses due to the uncertainty of new fiscal policies, disturbing inflation and possible recession, which has caused most of them to lose points in their actions.
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