Workday just hit the reset button on its leadership. The enterprise software giant announced Monday that CEO Carl Eschenbach is out after three years at the helm, with co-founder Aneel Bhusri stepping back into the top job effective immediately. The sudden shake-up comes as Workday shares have cratered more than 20% this year, caught in a brutal sell-off hitting SaaS companies as investors worry AI will upend the entire software industry. Bhusri's return signals the company's board believes it needs a founder's touch to navigate what he's calling "one of the most pivotal moments in our history."
Workday is bringing back the founder. The cloud-based HR and finance software company announced Monday that Aneel Bhusri, who helped launch the company and has cycled through nearly every leadership role imaginable, is returning as CEO after Carl Eschenbach stepped down from the position he'd held since 2024.
The timing tells you everything. Workday shares sank 5% on the news, extending a brutal year that's seen the stock plummet more than 20% as investors flee traditional SaaS companies. The entire software sector is getting hammered by fears that AI will fundamentally reshape how businesses buy and use enterprise software - and legacy players like Workday might not survive the transition.
Bhusri knows the company better than anyone. He served as co-CEO from 2009 to 2014, then solo CEO until 2020, before sharing the role again with Eschenbach starting in 2022 according to the company's announcement. Most recently he'd been executive chair since 2024, watching as Eschenbach tried to steady the ship through increasingly choppy waters.
"We're now entering one of the most pivotal moments in our history," Bhusri said in a statement. "AI is a bigger transformation than SaaS - and it will define the next generation of market leaders." That's not just corporate speak. It's an acknowledgment that the business model that made Workday a $40 billion company is under existential threat.
