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Salesforce will lay off 10% of its workforce as part of a larger tech layoff.

Salesforce intends to lay off approximately 10% of its workforce, or nearly 8,000 employees, and reduce its office space as tech companies cut costs amid economic concerns.

Chief Executive Officer Marc Benioff said in a note to employees on Wednesday that the move comes as customers are more cautious about spending as the economic “environment remains challenging.”

“As our revenue increased due to the pandemic, we hired too many people, which led to the economic downturn we’re now experiencing, and I accept responsibility for that,” Benioff said.

According to a regulatory filing, the software company anticipates $1.4 billion to $2.1 billion in restructuring charges, with up to $1 billion coming in the current quarter.

According to Benioff, the majority of the job cuts will take place in the coming weeks. Employees in the United States who are affected will receive a minimum of five months’ pay, health insurance, and other benefits.

According to company financial reports, Salesforce employed 79,824 people as of Oct. 31, up from more than 47,000 during the same month in 2019.

Salesforce’s announcement is the company’s latest round of job cuts. Hundreds of employees were reportedly laid off by the company in November.

Salesforce’s stock rose more than 4% on Wednesday.

Are there any layoffs in technology?

Salesforce is one of several technology companies that have announced layoffs or other cost-cutting measures as concerns about a possible economic downturn grow.

Also on Wednesday, video platform Vimeo announced an 11% workforce reduction, following earlier layoffs in July.

“We are entering 2023 with a more focused strategy to simplify Vimeo, and ultimately, our team size and composition must reflect that focus,” said Vimeo CEO Anjali Sud in an employee message. “This reduction allows us to achieve our growth and profitability goals while being far less reliant on the broader market, putting us in complete control of our destiny.”

Hiring freezes, rather than layoffs, are gaining traction in the labour market.

Last year, Meta, Facebook’s parent company, announced plans to lay off over 11,000 employees, or roughly 13% of its workforce. Meanwhile, Amazon has reportedly laid off approximately 10,000 employees.

Twitter, Facebook’s rival, laid off roughly half of its 7,500-person workforce in November.

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