![\"CEO](\"https:\/\/static.toiimg.com\/thumb\/msid-127552107,imgsize-15896,width-400,resizemode-4\/ceo-of-us-company-that-cut-over-thousand-jobs-in-ai-push-calls-narrative-that-ai-is-killing-software-jobs-.jpg\" "\\"<p>Representative")
<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\nWorkday CEO Carl Eschenbach has dismissed concerns that artificial intelligence (AI) will affect software business models. He called such fears overblown, despite his company cutting over 1,700 jobs last year as part of an AI-focused restructuring. In an interview with CNBC\u2019s \u201cSquawk Box\u201d<\/span> from the World Economic Forum in Davos, Switzerland, Eschenbach said, \u201cIt\u2019s an overblown narrative, and it\u2019s not true,\u201d<\/span> adding that AI is a tailwind and \u201cabsolutely not a headwind\u201d<\/span> for the company.The comments follow Workday’s elimination of about 1,750 jobs, or 8.5% of its workforce, in February 2025. In a memo sent to employees and published in a securities filing, Eschenbach said the layoffs were necessary to support the company’s ongoing growth efforts, including its focus on AI investments. Earlier this week, Workday also signed a three-year deal with OpenAI to strengthen its offerings.According to a CNBC report, software stocks have declined in recent months amid concerns that new AI tools will disrupt the sector and displace longstanding, recurring businesses that once fuelled substantial profits.<\/p>\n Govt Sends Notice To Elon Musk’s X On Grok AI Chatbot Misuse, IT Ministry Seeks Action Report<\/p>\n<\/div>\n<\/div>\n Workday shares lost 17% last year and have dropped another 15% since the start of 2026, following the company’s third-quarter earnings report that included weak subscription revenue guidance. Other software companies have faced similar pressure, with Adobe and Salesforce losing 21% last year, while HubSpot fell more than 40%.<\/p>\n Eschenbach said businesses are increasingly relying on Workday for AI tools and access to its first-party data, which the company is using to strengthen its position against third-party tools.He added that many software companies are investing in additional tools to expand their AI offerings and address growing competitive pressure in the AI space.\u201cWe are uniquely positioned to be one of the AI winners in the enterprise because of our incumbency, and lastly, because of the trust we get from our customers,\u201d<\/span>Eschenbach noted.<\/div>\nWorkday CEO sees growing demand for AI tools as software companies expand AI stacks<\/b><\/h2>\n<\/p>\n