Enterprise software companies are spending heavily on AI while looking for ways to cut costs. Oracle (ORCL) began another round of layoffs in September as it put more money into AI infrastructure. Earlier in May, Bridgewater Associates also sold its stakes in Workday (WDAY) and other software companies and increased its exposure to AI infrastructure.
Workday is now making cuts of its own. On Sept. 29, it said it would reduce its workforce by about 2.5%, mainly in Product and Technology, and give up some office space. The related costs will lower its GAAP operating-margin outlook, though its subscription-revenue and non-GAAP margin forecasts are unchanged.
