Workday names co-founder Aneel Bhusri as CEO in AI-driven shift

Feb 9 (Reuters) - Workday said ⁠on Monday ⁠co-founder ‍Aneel Bhusri will return as the company's CEO, replacing Carl Eschenbach, as the human resources software ‍provider looks to leverage artificial intelligence and shore ​up demand.

Shares of the company fell 5% in early trading after ​the announcement, which is effective immediately.

Workday has been navigating an increasingly consolidated industry with larger rivals using their strong balance sheets to buy ​out smaller firms and grow market share while enterprises tighten certain tech budgets owing to economic uncertainty.

"AI is ​a bigger transformation than SaaS (software as a service) — and it will define the ‌next generation of market leaders. I'm energized to return as CEO," Bhusri said in a statement.

The ​company in September announced a ⁠deal to buy AI firm Sana for about $1.1 billion as it pushes to stay competitive.

Around ‌the same time, activist investor Elliott Management unveiled a stake of more than $2 billion in Workday and lauded its leadership, citing ‌the HR firm's strong progress in recent years.

Up to last close, ‌the company's shares had fallen over 24% this year after slumping nearly 17% in 2025, signaling waning investor confidence in the firm's growth ‍strategy.

Last week, the firm said it would cut around 2% of its workforce and ⁠expected fiscal fourth-quarter and full-year financial results to be in line with the forecast provided in November with the exception of operating margin.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Leroy Leo and Maju Samuel)

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