A leadership shift has taken place at Workday, the enterprise software provider, as the technology sector undergoes rapid changes.
Co-founder Aneel Bhusri has resumed the role of chief executive officer, returning to a position he previously relinquished in January 2024 when he transitioned to executive chair. He had been succeeded by Carl Eschenbach. The leadership change takes effect immediately, with Eschenbach moving into a strategic advisory role.
The decision comes as software-as-a-service vendors confront mounting pressure from advances in AI. In announcing the transition, vice chair Mark Hawkins indicated that the evolving AI landscape represents a defining phase for the company and suggested that Bhusri’s strategic vision and longstanding ties to Workday’s culture make him well-suited to guide the organization through this period of transformation.
Bhusri has characterized the current environment as one of the most critical junctures in Workday’s history, describing AI as a shift even more significant than the rise of SaaS and one that is expected to determine the next generation of industry leaders.
Market Turbulence Follows AI Product Launches
The leadership reshuffle follows volatility in the SaaS market. Recently, shares of Workday and other cloud software providers declined sharply after Anthropic introduced Claude Cowork, a version of Claude Code designed for non-technical users, and subsequently released Claude Opus 4.6. The developments triggered a broad sell-off in software stocks, a downturn that erased nearly a trillion dollars in market value and was widely described by observers as a SaaS sector crisis.
According to Nick Mayes, principal analyst at PAC Analysts, Workday’s experience reflects a broader trend across traditional software providers. Many companies have seen their valuations drop as investors reassess business models that could be disrupted by AI-driven automation. In particular, agentic AI applications targeting sectors such as legal services are already reshaping expectations around conventional software offerings.
Mayes suggested that reinstating Bhusri could provide renewed confidence to the market. Eschenbach’s tenure had been marked by a focus on dealmaking and acquisitions, while investors may take reassurance from having a technology-focused founder back in charge. Comparable moves have been observed elsewhere in the industry, including increased hands-on involvement from Larry Ellison at Oracle.
SaaS Under Pressure, but Not Obsolete
Despite heightened concerns, Mayes indicated that predictions of the SaaS model’s collapse may be exaggerated. While tools such as Claude Cowork could pose medium-to long-term challenges, Workday retains advantages, including a substantial centralized data repository. Large language model providers may require time to match the depth and integration of such enterprise data ecosystems.
He advised existing Workday customers to remain focused on operational fundamentals rather than short-term stock price fluctuations. The company’s software maintains high retention rates, and widespread client abandonment has not materialized. At the same time, organizations were urged to adopt a measured and deliberate approach when developing AI strategies, given the volatility surrounding emerging technologies and financial markets.
Even enterprises that are not currently Workday customers may find value in its offerings, particularly those operating in heavily regulated industries. Current large language model providers are still developing the capacity to meet complex regulatory requirements at scale.
Ultimately, established ERP vendors should not be dismissed. Workday, as one of the longstanding players in the enterprise software space, continues to offer capabilities that remain relevant as the industry adapts to the accelerating impact of AI.
