Workday falls 7% on report that Amazon has canceled its contract with the HR software company
Workday stockfell Tuesday after a report from Insider revealed that Amazonended its contract with the HR software firm.
- Amazon had originally announced plans to adopt Workday's software companywide in 2017.
- According to Business Insider, Amazon halted the plan to roll out Workday software last year.
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Amazon had originally announced plans in 2017 to rollout Workday's human-resources software across the entire company, but challenges in deploying the cloud software proved to be too great.
Senior engineers at Amazon had warned about migration issues before the deal was announced, according to the report, citing people familiar with the matter. The deal struggled because the database behind Workday's software didn't scale as planned to fully support Amazon's growing workforce.
"The partnership between the two companies remains strong, with the possibility of revisiting the deployment in the future," the person said in a statement.
"The technical recommendation to then-CEO Jeff Bezos and his 'S-team' of senior decision-makers was that switching to Workday would be expensive and unlikely to succeed," Insider reported, adding that Bezos and team did not heed the warnings, "resulting in years of costly work."
An Amazon representative told Insider that some teams within the company still use the Workday software solution, and that "the partnership between the two companies remains strong."
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