Enterprise resource planning software company Workday announced a major Workday CEO change on Monday, confirming that chief executive Carl Eschenbach has stepped down and exited the company’s board with immediate effect. Workday co-founder Aneel Bhusri is returning as CEO on a permanent basis.

Eschenbach joined Workday in December 2022 as co-CEO alongside Bhusri and became the sole CEO in February 2024. Bhusri, who led the company continuously since 2009 in various CEO roles, had transitioned to executive chairman in 2024.

Bhusri’s Return Signals Strategic Continuity

Workday confirmed that Bhusri’s return is not interim and does not involve a search for a replacement. The Workday CEO change instead reflects a leadership reset as the company enters what it describes as a pivotal phase in its evolution.

Bhusri will continue working alongside company presidents Gerrit Kazmaier and Rob Enslin as he resumes operational leadership.

AI Strategy Central to the Workday CEO Change

The leadership shift comes as Workday positions artificial intelligence at the center of its next growth chapter.

“We’re now entering one of the most pivotal moments in our history,” Bhusri said in the company’s press release. “AI is a bigger transformation than SaaS — and it will define the next generation of market leaders.”

Bhusri added that he is energized to return as CEO and lead Workday through this transition, emphasizing the scale of opportunity ahead.

Recent Workforce Changes Provide Context

The Workday CEO change follows workforce reductions announced in February, when the company laid off 8.5% of its staff, or approximately 1,750 employees. At the time, Eschenbach said Workday needed a new approach to labor in the age of AI.

With Bhusri back at the helm, Workday appears to be aligning leadership experience with its long-term AI strategy as it navigates shifting enterprise software priorities.