Layoffs at software vendors, week to 1 October 2026: Workday, Microsoft and Blaize, and what customers should check

Layoffs at software vendors, week to 1 October 2026: Workday, Microsoft and Blaize, and what customers should check

1 October 2026 — This is the first of a weekly round-up of job cuts at software and technology vendors. We report only what the companies themselves have stated or filed, in a stock-exchange filing or in a government layoff notice (in the United States, a WARN notice, which employers must file before large layoffs). Trackers that add up layoffs across the industry are a useful pointer, but we do not repeat their totals. For each vendor we also say what its customers should check.

Not yet independently verified. Each cut rests on the company’s own filing or on a state layoff notice; no independent report of them was checked. Microsoft has made no public statement that we could read about the Redmond notice; the figures come from the state’s list. We will update this when it can be confirmed, and remove this note.

Workday: about 2.5% of its workforce, mainly product and technology

In a Form 8-K filed on 29 September 2026, Workday, the HR and finance software company based in Pleasanton, California, says that certain functions "announced reorganizations designed to better align team structures with Workday’s strategic growth priorities". The actions include "a reduction of approximately 2.5% of Workday’s current workforce, primarily within Workday’s Product and Technology team, and select leased office space reductions". Workday says it plans to keep hiring "in key strategic areas and locations" during its fiscal year 2027.

It expects charges of about $65 million to $80 million: $40 million to $55 million in cash for severance, benefits and related costs, about $10 million in non-cash stock-based compensation, and about $15 million for the impairment of leased office space. It expects the employee actions to be substantially complete by the first quarter of fiscal 2028, "subject to local law and consultation requirements".

For customers: the filing names no product being withdrawn. Because the cuts fall mainly in product and technology, ask your account team whether the roadmap items you were promised, especially in modules you have bought but not yet deployed, keep their dates.

Microsoft: WARN notice for 277 jobs in Redmond

Washington State's list of WARN notices shows a notice from Microsoft, received on 22 September 2026, for 277 permanent layoffs in Redmond, with 21 November 2026 as the date given for the layoffs. The state's list does not say which teams are affected.

For customers: nothing in the notice changes a product. Microsoft's product changes reach customers through its Message Center and lifecycle pages, which we cover separately.

Blaize: about 26% of its workforce

Blaize Holdings, an AI computing company based in El Dorado Hills, California, announced on 30 September 2026 a restructuring plan consisting "primarily of a reduction in force affecting approximately 26% of the Company’s workforce". It expects annualised savings of about $7.5 million to $8.4 million, costs of about $1.1 million to $1.3 million, almost all severance and benefits, and to complete the plan by 31 December 2026. Its chief executive says the company will focus on its hybrid AI platform and AI services, its autonomous-systems business, and national-scale sovereign AI programmes.

For customers: a cut of a quarter of the staff at a small listed vendor is a reason to check support and delivery commitments now, not at renewal.

What to ask any vendor that announces cuts

• Is any product, module or region being wound down? Ask for the answer in writing.
• Who is my account manager and support contact now? Teams are often reorganised with the cuts.
• Are roadmap dates in our contract or order form still valid?
• Has anything changed in where my data is processed, or by whom? Restructurings sometimes move support work to other countries or subcontractors.
• Check your renewal and termination terms before the next price conversation, so you know your options.

Sources

• Workday, Inc., Form 8-K (Item 2.05, Costs Associated with Exit or Disposal Activities), SEC EDGAR — 29 September 2026
• Washington State Employment Security Department: WARN notices (Microsoft, Redmond, received 22 September 2026) — 1 October 2026
• Blaize Holdings: press release on its restructuring plan, filed with the SEC — 30 September 2026