Workday has announced that co-founder Aneel Bhusri is returning as CEO, replacing Carl Eschenbach effective immediately as the enterprise software company's shares have fallen sharply over the past year. Bhusri, who co-founded Workday in 2005, previously served as CEO from 2014 to 2020 and as co-CEO from 2020 to 2024. The leadership change comes as Workday's stock has declined approximately 41% over the past 12 months, trading at their lowest level since November 2022.

Eschenbach, who was named co-CEO in late 2022 alongside Bhusri before becoming sole CEO, is stepping down from the board but will remain as a strategic adviser to Bhusri, the company said in a statement. The announcement follows Workday's decision to cut about 400 employees, representing roughly 2% of its workforce, as the company seeks to better invest in priority areas. Workday had approximately 20,600 workers at the end of October.

Bhusri emphasized the transformative potential of artificial intelligence, stating that "AI is a bigger transformation than SaaS — and it will define the next generation of market leaders." According to a regulatory filing, Bhusri will receive $135 million in stock awards based on time and performance requirements, plus a $1.25 million base salary. Eschenbach will receive a $3.6 million severance payment and accelerated vesting of his outstanding stock awards.