Workday’s Leadership Shift: Co-Founder Aneel Bhusri Returns as CEO Amid AI-Focused Transformation
In a significant leadership transition, Workday, a leading enterprise resource planning (ERP) software company, has announced the departure of CEO Carl Eschenbach, effective immediately. Co-founder and former CEO Aneel Bhusri will reassume the role of CEO, steering the company into its next phase of innovation centered around artificial intelligence (AI).
Leadership Transition Details
Carl Eschenbach joined Workday in December 2022 as co-CEO alongside Bhusri, bringing a wealth of experience from his tenure at Sequoia Capital and VMware. By February 2024, Eschenbach had transitioned to the role of sole CEO, while Bhusri took on the position of executive chairman. This recent change marks Bhusri’s return to the helm, a position he held from the company’s inception in 2009 until 2024.
Workday has confirmed that Bhusri’s return to the CEO role is permanent, emphasizing the company’s commitment to continuity and strategic focus. In the official press release, Bhusri stated, We’re now entering one of the most pivotal moments in our history. 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.
Strategic Focus on AI
This leadership change underscores Workday’s intensified focus on AI as a transformative force in enterprise software. The company recognizes AI’s potential to redefine business processes, enhance decision-making, and drive efficiency across organizations.
In February 2025, Workday launched the Workday Agent System of Record, a platform designed to help enterprises manage all their AI agents in one centralized location. This system provides visibility into the tasks AI agents are performing, tracks their impact, and manages access controls, addressing enterprises’ concerns about maintaining control over AI implementations. CEO Carl Eschenbach at the time emphasized the importance of managing both human and digital workers through a unified platform, stating, The workforce is expanding. It’s no longer just human workers; it’s now digital workers, and we need to have a unified platform that manages your entire workforce going forward.
Additionally, Workday introduced a suite of AI agents focused on areas such as payroll, contracts, and financial auditing. These role-based agents are designed to perform specific tasks and, over time, acquire multiple skills, unlocking the true power of AI in enterprise settings.
Recent Organizational Changes
In February 2025, Workday announced a reduction of 1,750 employees, approximately 8.5% of its workforce. Eschenbach explained that the company needed a new approach to labor in the age of AI, indicating a strategic shift towards integrating AI technologies and optimizing operations.
Workday’s Evolution and Market Position
Founded in 2005 by Aneel Bhusri and Dave Duffield, Workday has grown into a prominent provider of cloud-based ERP solutions, offering services in human capital management, financial management, and analytics. The company went public in 2012, achieving a market capitalization of over $7 billion at that time.
Over the years, Workday has expanded its capabilities through strategic acquisitions. In 2018, it acquired Adaptive Insights, a financial modeling startup, for $1.55 billion, enhancing its financial planning and analysis offerings. In 2021, Workday purchased Peakon, an employee feedback platform, for $700 million, strengthening its human capital management solutions.
The return of Bhusri as CEO is expected to provide stability and a clear vision as Workday navigates the rapidly evolving landscape of AI in enterprise software. His deep understanding of the company’s culture, products, and market dynamics positions him to lead Workday through this transformative period.
Industry Context
The enterprise software industry is witnessing a surge in AI adoption, with companies leveraging AI to automate processes, gain insights, and enhance user experiences. Workday’s renewed focus on AI aligns with this trend, aiming to deliver innovative solutions that meet the evolving needs of its customers.
As AI continues to reshape the business landscape, Workday’s strategic initiatives and leadership adjustments reflect its commitment to staying at the forefront of technological advancements and delivering value to its stakeholders.
