Mass layoff at Salesforce; focus on profitability, cost cutting

Some media reports suggested that about 2,500 jobs would be cut

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While an exact number is yet to be revealed by Salesforce, it is clear that hundreds have been rendered jobless at the enterprise software company.

With ‘accountability’ being a significant part of the sales performance, this round of layoffs appeared to be inevitable as per the Company. As per a Protocol report, about 90 contractual employees were laid off earlier and the Company has frozen hiring till next year. While many will be asked to leave basis their unsatisfactory performance, many others would be put under a month’s review post which they would be let go.

As per statements given to various media, the Company intends to support the impacted employees who, the Company claims, are less than 1,000 in number.

The workforce strength of the Company had grown 36 per cent over the last one year, in keeping with the surging demands of customers.

Salesforce, the cloud-based customer-management software, serves clients across industries. Throughout the pandemic it managed to generate high revenues and even acquired Slack, the messaging platform about a year ago.

In 2022, however, it has been trying to minimise spending, and had slowed down hiring and cut down on travel too to do so.

It is reported that Starboard Value, the activist investor may be pressurising Salesforce to improve profitability, which is presently said to be at least 13 per cent less than expected. The first step towards improving the situation would naturally be to curtail expenditure, a fact that Salesforce had realised a while ago.

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