Workday plans to eliminate about 2.5% of its workforce, or roughly 525 jobs, primarily in its Product and Technology organization, according to a Sept. 29 SEC filing. The cuts are the company’s third reduction in under 20 months and come as Workday prioritizes agentic AI (AI software that performs tasks autonomously) while product development costs rise. Workday expects restructuring charges of $65 million to $80 million, but reaffirmed its guidance apart from the GAAP operating margin outlook, which is now 20 to 21 points below non-GAAP in the fiscal third quarter. The company serves more than 11,500 organizations, including over 65% of the Fortune 500, and expects $9.9 billion in subscription revenue this fiscal year. The restructuring comes amid reported talks between Silver Lake and Workday over a potential take-private transaction, although the company has not linked the layoffs to those discussions. Investors will focus on Workday’s Oct. 13 analyst day for its response to the challenge of pricing AI services as customer headcounts shrink.