Salesforce ready to slash workforce

Share post:

Following a period of rapid pandemic hiring that left it with an overburdened workforce in the midst of an economic slowdown, Salesforce is laying off about 10% of its workforce, or more than 7,350 employees, and closing some offices.

Salesforce stated in a filing with the US Securities and Exchange Commission (SEC) that the restructuring plan will reduce operating costs, improve margins, and increase profitability. The job cuts in the tech industry would result in charges ranging from $1.4 billion to $2.1 billion, with only $800 million to $1 billion recorded in the fourth quarter.

Salesforce co-CEO Marc Benioff explained the layoffs in a letter to employees, citing the complex and difficult environment and client belt-tightening, and saying the company had hired too many people when growth accelerated during Covid-19.

Salesforce did not notify employees of the job cuts, but stated that layoff decisions would be subject to local laws, consultation requirements in certain countries, and the company’s business needs.

The number of layoffs is said to be the highest in the company’s 23-year history. Employees who lose their jobs will receive nearly five months of pay, health insurance, career resources, and other benefits, according to the company. “Those outside the U.S. will receive a similar level of support, and our local processes will align with employment laws in each country,” Benioff added.

The sources for this piece include an article in Reuters.

SUBSCRIBE NOW

Related articles

Scarlett Johansson – did OpenAI use HER voice?

Hollywood star Scarlett Johansson expressed shock and anger after a new OpenAI chatbot debuted with a voice eerily...

Apple faces backlash over recent ads

Apple is currently facing significant public backlash due to a controversial advertisement featuring a hydraulic press crushing various...

 Google executives face employee concerns amid profitsurge

At a recent all-hands meeting, Google employees voiced significant concerns regarding morale, cost-cutting measures, and the impact of...

Warren Buffett warns AI May Be Better for Scammers than Society

Warren Buffett, the renowned investor, warned shareholders at his annual meeting in Omaha, Nebraska, about the potential dangers...

Become a member

New, Relevant Tech Stories. Our article selection is done by industry professionals. Our writers summarize them to give you the key takeaways