Workday Inc (NASDAQ:WDAY) shares fell more than 6% after the company announced that co-founder and current executive chair Aneel Bhusri will return as chief executive officer.
Carl Eschenbach, who has served as CEO for the past three years, is stepping down and leaving the board but will remain involved as a strategic advisor to Bhusri, the company said.
“It’s been a privilege to serve as CEO over the past three years and I’m proud of all we achieved — instilling greater operational discipline, expanding globally, broadening our industry focus, and laying meaningful groundwork in AI,” Eschenbach said in a statement.
Analysts at Jefferies raised concerns about the timing and implications of the leadership change, noting it comes six days after the end of fiscal Q4 for the company.
“Co-founder Aneel Bhusri taking over raises questions, given he turned the company over to Carl in 2024 as sole CEO to focus on product/AI,” they wrote. “Something isn’t right.”
They added that “many view this move as short-term with more management change ahead and question if WDAY can hit its medium-term targets,” and noted that while AI remains a focus, slowed growth and potential margin pressures could be a concern.
The Jefferies analysts noted that they are awaiting further clarity at Workday’s earnings release on February 24.
