Workday CEO Eschenbach departs, co-founder Aneel Bhusri returns as CEO

Enterprise resource planning software company Workday announced Monday that chief executive Carl Eschenbach is stepping down from his position and departing the company’s board of directors, effective immediately. In a notable leadership transition, Workday co-founder and former chief executive Aneel Bhusri will return to serve as CEO.

Eschenbach joined Workday’s leadership team in December 2022, initially serving as co-CEO alongside Bhusri. In February 2024, he moved into the role of sole chief executive, overseeing the company independently. Bhusri, who has led Workday since 2009 — at various times acting as co-CEO and at other times as the sole CEO — transitioned to executive chairman in 2024 and has now returned to the top executive role.

The company confirmed that Bhusri’s return is a permanent appointment rather than an interim arrangement during a search for a successor. Workday emphasised that the decision is a deliberate strategic move aligned with the organisation’s long-term direction, not a temporary leadership adjustment.

Workday indicated that the leadership change is intended to prepare the company for its next stage of growth, with artificial intelligence positioned at the centre of that strategy. The enterprise software provider views AI as a transformative force that will shape its future offerings and competitive position in the broader market.

In a press release issued Monday, Bhusri described the current period as one of the most pivotal moments in Workday’s history. He said that artificial intelligence represents a transformation even more significant than the rise of software-as-a-service (SaaS), adding that AI will ultimately define the next generation of market leaders. Bhusri expressed excitement about returning as CEO and said he is eager to collaborate closely with company presidents Gerrit Kazmaier and Rob Enslin as Workday advances its AI-focused initiatives.

The executive transition follows a broader restructuring effort across the organisation. In February of the previous year, Workday announced workforce reductions totalling approximately 8.5%, affecting approximately 1,750 employees. At the time, Eschenbach noted that the company needed to adopt a new approach to labour and operations in response to the increasing influence of artificial intelligence across enterprise technology and business processes.

With Bhusri once again leading the company, Workdaisbe is reinforcing its commitment to artificial intelligence as it enters what it characterises as a critical and defining chapter in its corporate journey.