“Squawk Box” Eschenbach said this at the World Economic Forum in Davos, Switzerland. “That’s an exaggeration and not true.” He added that AI is a tailwind. “It’s definitely not a headwind.” For the company.The comments come after Workday cut approximately 1,750 jobs in February 2025, representing 8.5% of its workforce. In a memo sent to employees and published in a securities filing, Eschenbach said the job cuts are necessary to support the company’s continued growth efforts, including a focus on AI investments. Earlier this week, Workday signed a three-year agreement with OpenAI to enhance its services.Software stocks have fallen in recent months on concerns that new AI tools will disrupt the sector and displace years of ongoing business that once brought in big profits, CNBC reports. Workday stock fell 17% last year and has fallen another 15% so far in 2026 following the company’s third-quarter earnings report, which included a weak outlook for subscription revenue. Other software companies are facing similar pressures, with Adobe and Salesforce losing 21% last year, and HubSpot falling more than 40%.
Workday CEO sees demand for AI tools increasing as software companies expand their AI stacks
Eschenbach said companies are increasingly relying on Workday for AI tools and access to their data, and the company is using this to strengthen its position against third-party tools.He added that many software companies are expanding their AI offerings and investing in additional tools to deal with increasing competitive pressures in the AI space.“We are uniquely positioned as one of the AI winners within the enterprise because of our track record and, finally, the trust of our customers.”Eschenbach pointed out:
