Workday Founder Returns as CEO Amid AI-Driven Market Uncertainty

In a sudden leadership shift, Workday announced Monday that CEO Carl Eschenbach has stepped down, with company co-founder Aneel Bhusri immediately resuming the chief executive role. Bhusri, who previously served as CEO from 2014 to 2020 and most recently as executive chair, returns to the helm as the enterprise software firm navigates a turbulent period for the industry.

The change comes during a significant downturn for software stocks. Workday shares fell 17% in 2025 and have dropped over 25% since January, reflecting broader investor anxiety about how artificial intelligence might reshape the sector. The company's stock closed down an additional 5% following the announcement.

In a statement, Bhusri framed the moment as critical. "AI represents a larger shift than software-as-a-service did," he said. "It will determine which companies lead the market in the coming years." This stance contrasts with recent comments from Eschenbach, who last month described fears of AI disruption as "overblown" and inaccurate.

Under Eschenbach's three-year tenure, which included a period as co-CEO with Bhusri before taking sole command in 2024, Workday emphasized operational discipline and global expansion. The company also eliminated approximately 1,750 positions last year to redirect resources toward AI development. Eschenbach expressed pride in these efforts, stating the company laid "meaningful groundwork" in the technology.

Bhusri now faces the immediate challenge of steering Workday through this technological transition while reassuring a skeptical market. The move signals a founder's direct intervention to manage what the company views as an existential evolution.

Source: CNBC