Workday CEO Eschenbach Out, Co-Founder Bhusri Back at Helm

Workday, the enterprise resource planning software provider, announced a significant leadership transition on Monday, confirming that chief executive Carl Eschenbach has stepped down from his role and departed the company's board of directors, effective immediately. In a pivotal move, Workday co-founder and former CEO Aneel Bhusri will reassume the position of chief executive.

Eschenbach initially joined Workday in December 2022, serving as co-CEO alongside Bhusri, before transitioning to the sole CEO position in February 2024. Bhusri, a seasoned leader who has guided the company since 2009 in various capacities, including both co-CEO and sole CEO, had been functioning as the company's executive chairman since 2024 prior to this announcement.

Crucially, Workday clarified to TechCrunch that Bhusri’s return to the CEO role is a permanent appointment, not an interim measure while a search for a new leader is conducted.

This strategic leadership adjustment comes as Workday prepares to embark on its next major phase, which, as anticipated, will be heavily centered on advancements in artificial intelligence.

"We’re now entering one of the most pivotal moments in our history," Bhusri declared in the company’s press release issued Monday. He further emphasized the profound impact of AI, stating, "AI is a bigger transformation than SaaS — and it will define the next generation of market leaders. I’m energized to return as CEO, working alongside our presidents Gerrit Kazmaier and Rob Enslin, and I’m excited about the opportunity in front of us."

Notably, last February, Workday implemented significant workforce reductions, laying off 8.5% of its staff, equivalent to 1,750 individuals. At that time, Eschenbach had articulated the company's need for a revised approach to labor in response to the burgeoning era of AI.