Workday stock slides as Amazon cancels planned software adoption (update)

Jirsak/iStock via Getty Images

• Amazon (NASDAQ:AMZN) reportedly halted a planned company-wide adoption of Workday's (NASDAQ:WDAY) human-resources software three years after the deal was announced.
• Business Insider sources say Amazon last year pulled its migration from Oracle's PeopleSoft to Workday because the backing database didn't scale to support Amazon's workforce growth.
• Workday confirms to BI that the deal struck in 2017 is no longer in place but there "is the possibility of revisiting the deployment in the future."
• Workday shares are down 4.4% to $228.16.
• 2 p.m. update: Workday shares have pared some of its midday losses after the company published a blog post clarifying Amazon's Workday deployment.
• "At Workday, we’re hyper-focused on meeting the needs of our customer community and innovating to support the needs of their workforces. At times, however, customers have a unique set of needs that are different from what we’re delivering for our broader customer base. That's why more than a year and a half ago, both Workday and Amazon mutually agreed to discontinue Amazon’s Workday Human Capital Management deployment, with the potential to revisit it in the future," says the blog post.
• The Workday-Amazon relationship traces back to 2016.