Salesforce recently laid off its global workforce by 10 per cent in January and now the company is coming up with another round of layoffs. As the company is undergoing some transformations, the cloud computing firm is preparing to eliminate certain middle management positions and transitioning them into independent contributors.
According to an article published in Business Insider, two unidentified sources have disclosed that Salesforce is considering the removal of some of its middle management positions due to pressure from ‘activist investors’. The proposed changes involve reassigning certain managers to individual contributor roles, ultimately reducing the number of management layers within the organization.
The report further mentioned that Salesforce communicated to the publication that while certain groups may have implemented minor and inconsequential modifications, this is not a company-wide initiative. Although the restructuring is intended to streamline the chain of command and increase efficiency, the company is not systematically transitioning managers into individual contributor positions.
Bloomberg also confirmed about the upcoming round of layoffs from Salesforce. The Salesforce’s management feels the need to ‘change and reshape’ the organisation’s structure, they would take the required steps to increase efficiency.
Salesforce recently laid off 10 per cent of its workforce which impacted 7,000 roles at the company. A letter was also sent to the employees in which it was mentioned that the current business environment is challenging, and customers are taking a more cautious approach to their purchasing decisions. It was also stated in the letter that supporting the affected employees was their top priority, and the company would offer a comprehensive package to them.
In the United States, the affected employees would receive at least five months of pay, health insurance, career resources, and other benefits to assist in their transition. Similar support would be provided to those outside the US, with local processes aligned with each country’s employment laws.
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