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Salesforce joins other technology companies and announces a 10% cut in its team

Date: February 4, 2023 Time: 05:06:37

The American company Salesforce announced this Wednesday its plan to lay off 10% of its workforce in the coming weeks, thus joining the long list of technology companies that opted for a cost cut after not being able to continue with the accelerated growth they experienced during the pandemic. .

The company disclosed its restructuring plan today to the Securities and Exchange Commission (SEC) and said that Salesforce will also reduce its office space and real estate.

“The company estimates that it will incur approximately $1.4 billion to $2.1 billion in charges in connection with the Plan (cuts), of which it is expected to incur approximately $800 million to $1.0 billion in the US dollar in the rest of fiscal year 2023,” the SEC document highlights.

In a letter to employees, which was leaked to the trade media, Salesforce co-CEO and president Marc Benioff said the cuts come as many of the company’s customers are taking a more cautious approach to spent.

“The environment remains challenging and customers are taking a more measured approach to their purchasing decisions,” it said in the letter. Benioff also didn’t let the software vendor hire too many people when revenue surged during the COVID-19 pandemic and now “takes responsibility” for misjudging that the boom would end sooner than expected.

The company thus joins Meta and other technology giants that opted for the same cost reduction measure amid a context of more moderate demand. The company said it expects to mostly complete the employee restructuring plan by the end of fiscal 2024 and complete its real estate restructuring in fiscal 2026.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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