Workday shares sink over 13% as slower hiring hits payroll services demand
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Workday shares dropped more than 13% on Friday, after the human resources software provider pared back its annual subscription revenue forecast as economic uncertainty and slower hiring hurt demand for its payroll services. Enterprises have slowed down hiring of new employees as they navigate pressures from higher-for-longer interest rates and sticky inflation. Workday is set to lose about $9 billion in market value, if losses hold. The company expects subscription revenue to be between $7.70 billion and $7.73 billion for the fiscal year 2025, down from its prior forecast of $7.73 billion to $7.78 billion, it said after markets closed on Thursday. Analysts currently expect full-year subscription revenue at $7.73 billion, according to LSEG data. "While growth will be incrementally slower, we believe the driver is macro, not company-specific," Bernstein analysts wrote in a note. U.S. job growth slowed more than expected in April...