Photo by Zan on Unsplash
Job Cuts Announced at Salesforce
January 26, 2024
Salesforce, the 70,000-employee company known for cloud-based customer relationship management (CRM) software, is slimming down its workforce. The tech company plans to lay off about 700 employees, or roughly 1% of its current personnel. This step seems to be in line with its cost-saving measures, which have been a focal point for the company, especially in the last year.
This isn’t the first time Salesforce has reduced its employee count. Last year, the company let go of approximately 8,000 workers, a whopping 10% of its employees. This was primarily in response to cost-reduction pressures from investors. The latest round of layoffs just goes to show that Salesforce is still committed to keeping its costs down.
The tech industry as a whole seems to be following a similar trend. Both Google and Amazon have laid off hundreds of employees recently. In Amazon’s case, the layoffs spanned across its movie and TV studios as well as its Twitch streaming platform.
Nevertheless, it’s not all gloom and doom at Salesforce. The company still has plenty of job openings — around 1,000, according to sources close to the matter. This suggests that these layoffs might not be a drastic strategy shift, but a routine workforce adjustment. The main objective seems to be restructuring the company to focus more on growth.
Salesforce has had its share of hardships in the past year. The post-pandemic sales slump caused a significant dent in its growth trajectory. To add fuel to the fire, activist investors like Elliott Management bought stakes in Salesforce, pressuring the company to increase profit margins at a faster pace.
In response, Salesforce took several measures, including not just layoffs, but also cutting back on other expenses. Employee travel, real estate, and company retreats took a backseat as part of the company’s efforts to meet investor demands.
Despite these challenges, Salesforce’s stock has shown impressive performance, with an almost 80% rise over the last 12 months. This far outstrips the 37% growth of the Nasdaq Composite Index. Improved profit margins have played a crucial role in bolstering the company’s shares. Salesforce is due to announce the earnings of the last quarter in March, and the tech sector will be keenly watching.
Recent News
ALDI Recalls 4 Cream Cheese Spreads Over Salmonella Risk
ALDI has issued a recall of four types of cream cheese over a potential salmonella risk.
Indeed Announces 1,000 Workers Will Be Laid Off
The job search engine is experiencing some layoffs of its own.
Walmart To Lay off Hundreds of Corporate Staff Members
Walmart is set to lay off hundreds of its corporate staff members. The retail giant will also ask their remote workers to return to the office on a hybrid schedule.
Diamond Industry Shakeup: Anglo Divorces De Beers
The diamond industry is facing a seismic shift as Anglo American Plc announces plans to part ways with its iconic De Beers business.