Workday CEO Eschenbach steps down – co-founder Bhusri to return

(Image credit: Getty Images / Surasak Suwanmake)

Carl Eschenbach steps down as Workday CEO, handing over to co-founder Aneel Bhusri
Former leader will get $3.6 million cash severance package plus more
Company growth is in a good place, share prices aren't

Workday CEO Carl Eschenbach has stepped down with immediate effect after around two years as the head of the company (and another year as co-CEO), and he's already been replaced by Workday co-founder Aneel Bhusri who has returned to the role on a permanent basis.

A Form 8-K confirms that Eschenbach will receive $3.6 million in cash severance plus accelerated vesting of equity awards.

Bhusri will be eligible for a $1.25 million base salary "and an annual target cash bonus of up to 200% of the amount of his then-current base salary."

Workday leadership changes come amid shifting landscape

The news comes as company share prices continue to plummet – they're down around 40% year-over-year with investors worried about Workday's AI strategy and its susceptibility to the tech's influences.

Workday already cut around 1,750 roles, accounting for 8.5% of its then headcount, one year ago, framed as an AI-driven restructuring necessity. One year later, another 2% reduction was confirmed.

The company has had three consecutive quarters of 12.6% revenue growth – a not-so-insignificant sum, but a sum that's fallen from around 15-18% in the two preceding years.

"The opportunity ahead of us is always greater than what’s behind. We are at a massive inflection point with AI, and there is nobody better than Aneel to lead Workday through this moment and drive the vision forward," Eschenbach wrote in a LinkedIn post.

He now describes himself as Strategic Advisor to the CEO on the social networking platform.

"As we look ahead, Workday is entering a new chapter that will be defined by AI and innovation," Bhusri shared in a separate LinkedIn update.

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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