Salesforce cuts 300 jobs in second layoff round this year
Salesforce, the software behemoth, has confirmed the elimination of approximately 300 roles this month in a bid to streamline operations and control costs. The company refrained from providing specific details about its second layoff round of this year. A Salesforce spokesperson stated, "Like any healthy business, we continuously assess whether we have the right structure in place to best serve our customers and fuel growth areas. In some cases that leads to roles being eliminated."
Salesforce's layoffs reflect larger tech industry trend
The recent layoffs at Salesforce are part of a larger trend in the tech industry, which is moving toward cost control after years of rapid hiring. Earlier this year, Salesforce reduced its workforce by about 700 employees and at the beginning of 2023, it cut roughly 10% of its total workforce. These cuts represent a small fraction of Salesforce's total employee count but indicate an industry-wide shift toward tighter budgeting.
Salesforce shares dip following recent layoffs
The recent layoffs at Salesforce have caused a brief disturbance among investors, leading to a drop in the company's shares. On Monday, Salesforce shares fell as much as 0.5% to $252.64 in New York trading. This comes after the stock had already declined by 3.5% this year through the end of last week, reflecting investor concerns over the company's cost-cutting measures.
Other tech giants also implementing significant reductions
Salesforce is not the only tech giant making significant reductions this month. Intuit Inc. announced plans to eliminate 1,800 employees last week, attributing the cuts largely to underperforming employees and stating it would rehire approximately the same number of people. Other software makers such as UiPath Inc. and Open Text Corp. have also disclosed layoffs this month, while Microsoft Corp. cut hundreds of workers in its Azure cloud division last month.
Salesforce plans to hire in key areas despite cuts
Despite the recent layoffs, Salesforce has expressed intentions to hire in key areas to drive revenue growth. The company is particularly focusing on its Data Cloud product while keeping an eye on expenses. Chief Operating Officer Brian Millham stated during a June investor conference, "Are we getting the most from everybody in the business - if we are not, we are going to have to make reshaping decisions." As of January's end, Salesforce had a total of 72,682 employees.
