Workday Layoffs: 142 Pleasanton Jobs Cut in 2.5% Reduction

Workday, the Pleasanton-based HR and finance software company, disclosed on Sept. 29, 2026 that it is cutting about 2.5% of its workforce, and state WARN data show a notice filed the same day for 142 jobs at its Pleasanton headquarters, with a Nov. 30, 2026 separation date.

The company did not say how many jobs that is. Workday had a little over 21,000 employees at the end of January, so 2.5% works out to roughly 500 to 525 jobs worldwide; Business Insider put the figure at about 500. Most of the cuts fall on the Product and Technology team. This is Workday’s second reduction of 2026 and its third since February 2025, so many Bay Area tech workers are either affected or watching closely.

This post covers what Workday announced, the key dates, what California law requires when a large employer lays people off, and the steps to take before you sign a severance agreement.

What happened

On Sept. 29, Workday filed a Form 8-K with the U.S. Securities and Exchange Commission announcing a reorganization and workforce reduction. The filing says the goal is to “better align team structures with Workday’s strategic growth priorities.” It also says the company will reduce some leased office space and still plans to hire in key strategic areas and locations through fiscal 2027.

Workday estimated total charges of $65 million to $80 million. Of that, $40 million to $55 million is cash spending on severance, benefits and related costs. The rest covers stock-based compensation and a write-down of office leases. The filing says the employee-related actions should be substantially complete by the first quarter of fiscal 2028 (Workday’s fiscal year ends Jan. 31), subject to local law and consultation requirements.

The same day, Workday filed a notice under California’s WARN Act for 142 permanent layoffs at 6110 Stoneridge Mall Road in Pleasanton, with a separation date of Nov. 30, 2026, according to the state’s WARN data. Pleasanton Weekly reported an effective date of Nov. 1, so affected workers should check the date in their own notice letter. Pleasanton Weekly also reported that the affected roles include more than 40 software development managers and 21 automation engineers.

Business Insider reported that Workday laid off about 400 people in February 2026, and that neither the February nor the September announcement cited artificial intelligence as a reason. The cuts come in a year when investor worries about AI have weighed on enterprise software stocks, and Workday’s finance chief said in August that the company would prioritize investment in its agentic AI roadmap, according to TheStreet.

Date	Event	Source
Feb. 2025	Workday announces about 1,750 job cuts (about 8.5% of staff)	Associated Press
Feb. 4, 2026	Cal-WARN notice for 154 Pleasanton workers, effective April 6, 2026 (Workday cut about 400 jobs globally that month)	State WARN data; Business Insider
Sept. 29, 2026	Form 8-K: about 2.5% of workforce cut, mainly Product and Technology	Workday SEC filing
Sept. 29, 2026	Cal-WARN notice: 142 permanent layoffs in Pleasanton	State WARN data
Nov. 30, 2026	Scheduled separation date in the Cal-WARN notice	State WARN data
Jan. 1, 2027	SB 951 takes effect, requiring WARN notices to disclose AI-driven layoffs	California Legislature

What this means for California workers

If you work at Workday in Pleasanton and received notice, you are one of the 142 workers in the state filing. The state’s WARN data list your separation date as Nov. 30, though one local report gave Nov. 1. Read your notice letter closely to see whether you are still expected to work until then, when your last day on payroll is, and when your benefits end.

If you are a Workday employee in California but not at the Pleasanton site, or you work remotely, the 142 figure may not include you. California’s WARN Act counts layoffs site by site, and whether a remote employee is tied to a particular establishment can be a disputed question. Ask HR in writing which worksite you were assigned to.

The new SB 951, signed Sept. 30, will require Cal-WARN notices to state when layoffs are caused wholly or substantially by AI or automation. It does not take effect until Jan. 1, 2027, so it does not apply to this notice. See our post on California’s new AI layoff disclosure law.

For everyone else in Bay Area tech, the takeaway is practical. Many large tech employers have cut jobs in repeated rounds, so know your rights before your name is on a list.

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Your rights if you are laid off in California

Cal-WARN notice and back pay

California’s WARN Act (Labor Code 1400–1408) applies to establishments with 75 or more employees in the prior 12 months. It generally requires 60 days’ written notice before a mass layoff of 50 or more workers within 30 days, a relocation, or a closure. If an employer gives short or no notice, affected workers can recover up to 60 days of back pay and benefits (Labor Code 1402), and a court may award attorney’s fees (Labor Code 1404). Since Jan. 1, 2026, notices must also describe local workforce board services and the CalFresh food program and list an employer contact. Our Cal-WARN notice rights guide explains the details.

Your final paycheck and vacation

When you are laid off, all earned wages are due on your last day of employment (Labor Code 201). That includes any accrued, unused vacation or PTO, paid at your final rate (Labor Code 227.3). If final wages are paid late, you may be owed a waiting-time penalty of up to 30 days of pay (Labor Code 203). See our guide to California final paycheck rules.

Severance and the release

California does not require severance, but when an employer offers it, the payment is usually conditioned on signing a release of claims. Under the federal Older Workers Benefit Protection Act, workers 40 and older in a group layoff get at least 45 days to consider the agreement and 7 days to revoke after signing. The employer must also disclose the job titles and ages of the people selected and not selected. California law (Gov. Code 12964.5) also requires that you be told of your right to consult a lawyer and given at least five business days to consider the agreement. Our severance agreement review guide walks through what to check.

Discrimination and retaliation in layoff selection

A layoff is not a free pass. If age, disability, pregnancy, medical leave, a complaint you made, or another protected characteristic or activity played a part in choosing who was cut, you may have a claim under the Fair Employment and Housing Act or other laws. If you are 40 or older, look carefully at the age data in your release packet to see how selections broke down by age.

Unemployment, health coverage and equity

Laid-off workers are generally eligible for unemployment insurance, and severance pay generally does not reduce benefits, though pay in lieu of notice can. Read more about how unemployment works after a job loss. You can usually continue group health coverage through COBRA. Whether unvested stock awards are forfeited or accelerated depends on your equity plan and award agreements, so review them before you sign anything.

What to do now

1. Save your documents. Keep your notice letter, severance agreement, equity statements, offer letter, recent pay stubs and performance reviews in a personal file.
2. Confirm your dates in writing. Ask HR for your separation date, your last day of pay and benefits, and the worksite you are assigned to.
3. Check your final paycheck. Make sure it includes all wages and accrued vacation or PTO and arrives on your last day.
4. Do not rush the release. Use the full review period, and if you are 40 or older, review the age disclosure list that comes with the agreement.
5. File for unemployment with the EDD as soon as your employment ends.
6. Get a free legal review if anything about your selection, pay or agreement looks wrong. A wrongful termination attorney can tell you whether you have leverage before you sign.

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Frequently asked questions

How many California jobs is Workday cutting?

State WARN data show a Sept. 29 notice for 142 permanent layoffs in Pleasanton, effective Nov. 30, 2026. Workday has not said how many jobs its global cut includes. Based on its roughly 21,000 employees, 2.5% is about 500 to 525 jobs.

Did Workday give enough notice under Cal-WARN?

Cal-WARN generally requires 60 days’ notice. State WARN data show the Pleasanton notice filed Sept. 29 with a Nov. 30 separation date, about two months later. Whether notice was proper for any individual worker depends on when that worker actually received notice and which establishment they were assigned to.

Can I negotiate my severance package?

Often, yes, especially if you have a potential claim, such as age discrimination or unpaid wages. A lawyer can review the agreement and the age disclosure list and tell you whether asking for more makes sense.

Does SB 951 apply to these layoffs?

No. SB 951 takes effect Jan. 1, 2027, and applies to notices from then on. Workday’s filing did not cite AI as a reason for the cuts.

Sources

• U.S. SEC: Workday, Inc. Form 8-K (Sept. 29, 2026)
• Business Insider: Workday is doing another round of layoffs
• TheStreet: Workday’s axe falls again, and this time it lands on the tech team
• Pleasanton Weekly: Tri-Valley employers implement mass layoffs
• NBC Bay Area / Associated Press: Pleasanton-based Workday lays off 1,750 employees (2025)
• California EDD: WARN layoff notices

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