(Reuters) -Payroll processing company Workday said on Wednesday it will cut around 1,750 jobs, or 8.5% of its current workforce, as it grapples with competition and an uncertain spending environment.

It expects to incur around $230 million to $270 million in charges connected to the cost reduction plan, of which, around $60 million to $70 million is expected to be recognized in the fourth quarter.

The company also said it expects its fiscal fourth quarter and full-year financial results to be in-line with or above its prior forecast.

The charges and actions associated with the cost reduction plans is expected to be completed by the second quarter of fiscal 2026.