Workday CEO Aneel Bhusri sought to claim investor concerns about the rise of AI-powered ‘agentic’ apps, telling analysts that Human Resources software providers like Workday remain essential.
“No amount of vibe coding will replace the need for HR software providers like Workday,” Bhusri said on the company’s Q4 earnings call, pushing back against fears that lightweight AI tools could disrupt enterprise platforms.According to a report by Reuters, Workday reported 13% revenue growth for its fiscal year ending January 31, reaching nearly $9.6 billion, with $8.8 billion from subscriptions. But the shares fell more than 8% in after-hours trading after the company forecast subscription revenue for $9.0 billion for the current year just shy of Wall Street’s $10 billion expectations.
Bhusri co-founded Workday in 2005 and was reappointed as the CEO earlier this month. He acknowledged the investor security over how companies are monetising AI. Bhusri also added that Workday’s AI agents are still in early access, with revenue lagging due to consumption-based models. “There’s a delay before we see the actual revenue from it,” Bhusri explained. “I think we end this year, the second half this year, really strongly, and we set up a really amazing following year where we turn into a consumption platform, just like the hyperscalers.”
Layoffs and restructuring at Workday
Workday also announced that it would cut 2% workforce. The fresh round of layoffs will impact 400 employees, including dozens of quality assurance roles at its Pleasanton headquarters. The company had previously laid off 1,800 employees (8.5%) last year, recording $303 million in restructuring costs for the fiscal year. Workday reported just over 21,000 employees at the end of January, before the latest cuts.Bhusri also emphasised that Workday’s AI agents are designed to augment, not replace, enterprise HR systems. While acknowledging that adoption will take time, he expressed confidence that Workday’s AI-driven features will eventually transform the company into a consumption-based platform, aligning with the revenue models of cloud hyperscalers like Amazon and Microsoft.
