(Bloomberg) -- Workday Inc., a maker of software for business tasks such as human resources, named board member Carl Eschenbach co-chief executive officer and said he will become sole CEO after Aneel Bhusri steps down from the post to become executive chairman in January 2024.

Eschenbach, 52, a partner at Sequoia Capital, replaces Chano Fernandez as co-CEO effective immediately, Workday said Tuesday in a statement. Fernandez was promoted to the post alongside co-founder Bhusri in August 2020 after six years with the Pleasanton, California-based company.

“I’m confident that Carl, with his leadership skills and his proven experience in helping technology companies scale, as well as his commitment to culture and values, will help lead Workday through its next phase of growth,” Bhusri said in the statement.

Eschenbach, a Workday board member since February 2018, held several positions at VMware Inc., a maker of software for cloud computing, including president and chief operating officer, before joining Sequoia in 2016.

Fernandez told the company on Dec. 14 that he intended to resign, according to a regulatory filing. His decision “was not due to any disagreements with Workday on any matter relating to Workday’s operations, policies, or practices,” the company said in the filing. Fernandez is expected to remain active at the company through April 2023, according to the filing.  

As part of the announcement, Workday affirmed its forecast for the current period and its preliminary outlook for fiscal 2024 that the company issued Nov. 29 with fiscal third-quarter results.

The shares declined about 2% in extended trading after closing at $172.09 in New York. The stock has declined 37% this year as investors soured on many software companies.

(Updates with company comments on Fernandez’s departure in the fifth paragraph.)

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