Key Points:
- CEO Carl Eschenbach steps down immediately; co-founder Aneel Bhusri returns as permanent CEO.
- Workday links leadership change to its AI-driven growth strategy.
- Shift follows layoffs and restructuring as the company adapts to AI’s impact on the workforce.
Workday said Monday that CEO Carl Eschenbach is stepping down effective immediately, with co-founder Aneel Bhusri returning permanently to lead the enterprise software company as it sharpens its focus on artificial intelligence.
Aneel Bhusri Reclaims Top Job After Eschenbach Exit
Workday announced that Eschenbach is leaving the company and its board, ending a leadership transition that began just over two years ago. Bhusri, the company’s co-founder and longtime chief executive, resumes the CEO role with immediate effect.
Carl Eschenbach joined Workday in December 2022 as co-CEO alongside Bhusri. He became the company’s sole CEO in February 2024 after Bhusri moved into the role of executive chairman.
Workday said the change is effective immediately and did not announce a search for a new chief executive. The company confirmed that Bhusri’s return is permanent, rather than an interim appointment.
Founded in 2005, Workday is best known for its enterprise resource planning software for finance and human resources. The company has positioned itself as a major cloud software provider to large organizations worldwide.
Aneel Bhusri led Workday continuously from 2009 until 2024, sometimes as co-CEO and at other times as sole CEO. During that period, the company expanded its product portfolio and built a large customer base among Fortune 500 companies.
Company Ties Leadership Shift to AI Strategy
Workday framed the leadership change as a strategic move tied to its next phase of growth, which centers on artificial intelligence.
“We’re now entering one of the most pivotal moments in our history,” Bhusri said in a company press release on Monday. “AI is a bigger transformation than SaaS, and it will define the next generation of market leaders.”
Aneel Bhusri said he is energized to return to day-to-day leadership and plans to work closely with company presidents Gerrit Kazmaier and Rob Enslin. He added that the opportunity ahead is significant as Workday integrates AI more deeply into its products.
Software companies across the enterprise sector are racing to embed generative AI and automation into core business systems. Many executives describe AI as a shift comparable to the earlier move from on-premises software to cloud-based services.
Workday has already introduced AI-driven features aimed at automating routine finance and human resources tasks. The company has said these tools are designed to help customers manage workforces, analyze data, and make decisions faster.
Layoffs and Labor Changes Set Recent Context
The leadership change follows a period of workforce reductions and internal restructuring at Workday.
In February last year, the company laid off 8.5% of its employees, affecting about 1,750 people. At the time, Workday said it needed to rethink how work is done as AI reshapes job roles and productivity.
Carl Eschenbach said then that the company required a new approach to labor to remain competitive in an AI-driven environment. The layoffs were part of a broader trend across the technology sector, where companies have reduced headcount while increasing investment in AI.
Workday did not comment on Monday on Carl Eschenbach’s departure beyond its announcement and did not disclose any disagreements or performance-related issues.
The company said it remains focused on long-term growth and product innovation under Aneel Bhusri’s leadership. Investors and customers will be watching closely to see how Workday’s AI strategy evolves as its co-founder returns to the helm.
