Salesforce layoffs

"We hired too many people leading into this economic downturn."

Salesforce also said Wednesday that it will be closing some of its offices, but didn’t include locations. The layoffs are being made on the heels of a shake-up in Salesforce’s top ranks. [told staff that layoffs were coming](https://apnews.com/article/twitter-inc-technology-business-layoffs-dfeced152095186df3e6d0937bfccceb) due to the economic landscape and the company’s rapid hiring in the last several years. The shares gained nearly 4% Wednesday to close at $139.59. Benioff’s hand-picked co-CEO Bret Taylor, who also was Twitter’s chairman at the time of its tortuous $44 billion sale to billionaire Elon Musk, left Salesforce. technology companies to announce major job cuts as they prune payrolls that rapidly expanded during the pandemic lockdown.

Salesforce will cut 10 percent of its workers and shut down offices. “The [economic] environment remains challenging and our customers are taking a more ...

However, it’s important to keep in mind that, despite the cuts at the largest tech companies, the overall tech unemployment rate [remains at 2 percent](https://www.comptia.org/content/tech-jobs-report), and organizations of all sizes still need tech talent. Like Salesforce, many of these companies enjoyed outsized revenues and profits during the pandemic, and plowed that money into new hires—but when the economy threatened to contract, these companies moved just as quickly to slash budgets and positions. During company earnings reports throughout 2022, executives cited slowing revenue from small- to medium-sized businesses (SMBs), driving teams to look for savings wherever they could. [Micron](https://www.dice.com/career-advice/micron-plans-layoffs-for-2023) and [Tesla](https://www.dice.com/career-advice/tesla-faces-layoffs-hiring-freeze-report) may reduce jobs in coming months, and Google has hinted that its recent attempts at [streamlining its costs and operations](https://www.nytimes.com/2022/12/28/technology/google-job-cuts.html) could escalate into layoffs of some sort. But Salesforce isn’t alone in enacting significant layoffs. [According to The New York Times](https://www.nytimes.com/2023/01/04/business/salesforce-layoffs.html) (which also reported the office closings), Salesforce had roughly 80,000 employees at the end of October, which means the layoffs will affect roughly 8,000 people.

Salesforce announced yesterday that it plans to cut around 10% of its workforce as the software giant fights rising costs and an oversubscribed workforce on the ...

Several teams are impacted; however, the majority of role eliminations are in our Amazon Stores and PXT organisations,” Jassy added. Amazon first revealed in November that it planned to eliminate a raft of positions across its devices and books division. Stripe revealed plans to cut 1,100 staff, around 14% of its total workforce, while Cisco announced more than 4,000 staff would be let go. At the end of October, Salesforce boasted more than 80,000 staff globally. This latest round of tech layoffs follows a period of lingering uncertainty in the global technology industry. Around 26,000 jobs are set to be cut across both Amazon and Salesforce as the latest round of layoffs continues to shake the global technology industry.

After sweeping Salesforce layoffs, Bob identifies four major problems that Salesforce will have to manage after a sweeping round of layoffs.

The [on-demand pass](https://cloudwarsexpo.com/on-demand-pass/), which is included with your Acceleration Economy subscription, gives you access to approximately 40 hours of invaluable educational content. However, that was happening while the company was growing 20% or more per quarter — then, that rate [fell to 14% last quarter](https://accelerationeconomy.com/cloud-wars/oracle-sap-leapfrog-salesforce-in-cloud-wars-top-10-ibm-jumps-servicenow-falls/). Rather, the layoffs were a symptom of underlying problems inside the company. 00:33 — Yesterday, Salesforce had to announce a major layoff, consisting of around 7,500 employees, across the company. [release of Genie](https://accelerationeconomy.com/cloud-wars/cloud-wars-minute/is-salesforce-genie-a-case-of-overreach/) Each episode provides insights and perspectives around the “reimagination machine” that is the Cloud.

Prominent market commentator Jim Cramer on Wednesday cautioned investors the tech industry may see more lay-offs owing to continuing macroeconomic ...

‘The Big Short’ Investor Michael Burry, too, has expressed skepticism on the share price movement saying “job cuts are [so not the reason to own” the stock.](https://www.benzinga.com/news/23/01/30288416/big-short-investor-michael-burry-says-salesforce-stock-shouldve-been-down-job-cuts-are-so-not-the-re) Cramer’s comments come in the wake of Salesforce Inc CRM reportedly planning to reduce its current workforce by 10%. “They don’t seem to understand that their time in the sun ended over a year ago." It won’t be that. [lead to charges between $1.4 billion and $2.1 billion.](https://www.benzinga.com/trading-ideas/movers/23/01/30272564/why-salesforce-stock-is-rising-wednesday)

After companies including Amazon and Meta announced significant job cuts in 2022, more layoffs are on the horizon, like at Vimeo and others in tech.

"It is now time for a new leader to help support the next phase." "We've been focused over the last year on controlling our costs," Reffkin wrote in an email to employees. "We continue to see headwinds on our expense lines, particularly in the near term," Goldman Sachs CEO David Solomon said at a conference last month. "As part of that work, today we reduced the size of some of our employee teams. [press release](https://investors.stitchfix.com/news-releases/news-release-details/stitch-fix-announces-elizabeth-spaulding-will-step-down-chief). "This was a very hard decision that impacts each of us deeply," Sud wrote in an email to staff. According to data cited by the Journal from [Layoffs.fyi](https://layoffs.fyi/), a site that's been tracking layoffs since the start of the pandemic, tech companies slashed more than 150,000 in 2022 alone — compared to 80,000 in 2020 and 15,000 in 2021. "We know there will be some bumpiness over the next few weeks as we navigate a lot of change at once. "With this in mind, we've made the very difficult decision to reduce our workforce by about 10 percent, mostly over the coming weeks." Amazon is the latest tech giant to lay off thousands of workers. Ultimately, we will remain nimble and we will size the firm to reflect the opportunity set." Amazon is in the midst of the most significant round of layoffs in the company's history.

Regarding the recently announced Salesforce layoffs, Acceleration Economy Analyst Bob Evans pens a letter to Salesforce CEO Marc Benioff.

It’s time to bring your Industries business fully into the mainstream of who Salesforce is and what it does. [analyst network](https://accelerationeconomy.com/meet-our-analysts/) of CIOs, CEOs, CMOs— business leaders who are or have been your customers — to solicit their ideas for getting Salesforce back on track. In good economic times as well as bad, those partners have the potential to help Salesforce boost its growth rates to the levels your company has made into its standard. [Industry Cloud Top 10](https://accelerationeconomy.com/cloud-wars-top-10/)rankings, Salesforce has held the #1 position — but that’s now threatened by Oracle’s full-blown commitment to end-to-end industry solutions. So perhaps it is useful to point out the cloud-revenue growth rates of some competitors that you and Taylor, just three months ago, portrayed as lightweights in comparison to the Salesforce juggernaut: But there’s a big difference — a huge difference — between being the feisty newcomer who’s shaking things up and annoying the crap out of the leader, and then being the top dog. - And this final one, Marc, pinpoints what I think is the deepest challenge Salesforce faces: You and your company have begun to believe that customers will love whatever you decide to do because, well, you’re Salesforce! I offer my rationale in “ [Oracle, SAP Leapfrog Salesforce in Cloud Wars Top 10; IBM Jumps, ServiceNow Falls](https://accelerationeconomy.com/cloud-wars/oracle-sap-leapfrog-salesforce-in-cloud-wars-top-10-ibm-jumps-servicenow-falls/).”) [letter to employees announcing the layoffs](https://www.sec.gov/Archives/edgar/data/1108524/000110852423000003/ex991-lettertoemployees.htm) was heartfelt, elegant, and reflective of the unique “Ohana” spirit you have created within Salesforce over the past 23 years, and for that, you deserve a great deal of credit. And that you’ve begun to believe that Salesforce’s past performance is indeed an indicator of future success. While many CEOs in many industries would sell their souls for a growth rate of 14% — particularly in these troubled economic times — you and the company you’ve built are held to a different standard. (BTW, the two companies that jumped past you are the two you love to make fun of:

Salesforce layoffs impact Tableau, Slack, MuleSoft, with cut jobs including a marketing director, a software engineer and customer success employees.

Tableau had [about](https://www.sec.gov/Archives/edgar/data/1303652/000130365219000004/a991-01q42018.htm) 4,000 employees as of 2019. [according](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001764925/000176492521000050/work-20210131.htm) to a filing with the U.S. MuleSoft had 3,400-plus employees as of 2021, [according](https://web.archive.org/web/20211229013008/https://www.mulesoft.com/about) to an archived image of MuleSoft’s website. [layoffs](https://www.crn.com/news/cloud/tech-layoffs-in-2022-23-companies-slashing-their-workforce) include [HP](https://www.crn.com/news/computing/hp-layoffs-will-cut-up-to-6-000-jobs-over-three-years), [Intel](https://www.crn.com/news/computing/intel-begins-layoffs-in-california-voluntary-unpaid-leave-program), [Elastic](https://www.crn.com/news/cloud/elastic-announces-layoffs-with-q2-earnings-hundreds-of-workers-cut), [Aqua Security](https://www.crn.com/news/security/aqua-security-lays-off-10-percent-of-its-workforce-citing-changing-economy), [AvePoint](https://www.crn.com/news/software/microsoft-365-focused-avepoint-lays-off-65) and [N-able](https://www.crn.com/news/managed-services/n-able-slashes-jobs-amid-restructuring-this-decision-is-never-easy-to-make-). [ServiceNow](https://www.linkedin.com/feed/update/urn:li:activity:7016542517823234048?commentUrn=urn%3Ali%3Acomment%3A(activity%3A7016542517823234048%2C7016599520012623873)&dashCommentUrn=urn%3Ali%3Afsd_comment%3A(7016599520012623873%2Curn%3Ali%3Aactivity%3A7016542517823234048)), [Genentech](https://www.linkedin.com/feed/update/urn:li:activity:7016464851476631553?commentUrn=urn%3Ali%3Acomment%3A(activity%3A7016464851476631553%2C7016683825581748224)), [FanDuel](https://www.linkedin.com/feed/update/urn:li:activity:7016464851476631553?commentUrn=urn%3Ali%3Acomment%3A(activity%3A7016464851476631553%2C7016619212894871552)&replyUrn=urn%3Ali%3Acomment%3A(activity%3A7016464851476631553%2C7016757851234717696)) and [Dave](https://www.linkedin.com/feed/update/urn:li:activity:7016464851476631553?commentUrn=urn%3Ali%3Acomment%3A(activity%3A7016464851476631553%2C7016510032049537024)) posted to LinkedIn encouraging laid off workers to apply for open jobs with their companies. [announced](https://www.crn.com/news/cloud/salesforce-layoffs-poor-earnings-ceo-departure-hiring-strategy-led-to-massive-cuts/6?itc=refresh) he was leaving the company. [posted](https://www.linkedin.com/posts/kellyewishard_datafam-activity-7016491657760014336-q6RP?utm_source=share&utm_medium=member_desktop) on LinkedIn about getting laid off. [said](https://www.linkedin.com/posts/chawlapaul_today-has-been-a-difficult-day-for-the-salesforce-activity-7016515278264049664-uU95?utm_source=share&utm_medium=member_desktop) in a LinkedIn post that most of his team and some peers were laid off. [posted](https://www.linkedin.com/posts/kellyewishard_datafam-activity-7016491657760014336-q6RP?utm_source=share&utm_medium=member_desktop) about a layoff on the social media network LinkedIn. [Salesforce To Lay Off 7,000 Employees: ‘Hired Too Many People’](https://www.crn.com/news/cloud/salesforce-to-lay-off-7-000-employees-hired-too-many-people-?itc=refresh)] [planned](https://www.crn.com/news/cloud/salesforce-to-lay-off-7-000-employees-hired-too-many-people-?itc=refresh) for enterprise applications vendor Salesforce have also affected the enterprise applications vendor’s subsidiaries Slack, MuleSoft and Tableau. [reported](https://www.businessinsider.com/salesforce-layoffs-hit-slack-product-development-and-engineering-org-2023-1) an unspecified number of layoffs at MuleSoft and a reduction of 10 percent of subsidiary Slack’s product and engineering organization.

Layoffs have to come to Slack as parent company Salesforce slashes 10% of its workforce after CEO Marc Benioff said it "hired too many people."

Salesforce declined to provide additional comments [beyond its SEC filing](https://www.sec.gov/ix?doc=/Archives/edgar/data/1108524/000110852423000003/crm-20230104.htm) made public on Wednesday. While they began on Wednesday, they will continue for weeks, Benioff [warned in an email sent to the whole company.](https://www.businessinsider.com/read-marc-benioff-email-to-salesforce-staff-announcing-mass-layoffs-2023-1) [Salesforce closed its acquisition](https://www.businessinsider.com/salesforce-slack-acquisition-merger-deal-2020-11) of the workplace messaging platform Slack for $27.7 billion in July 2021. [Insider previously reported](https://www.businessinsider.com/salesforce-rank-employees-more-layoffs-marc-benioff-2022-12), Salesforce asked some managers to rank their lowest 10% of employees in December, and Benioff warned employees last month in an all-hands meeting to expect "changes." [Insider confirmed that roughly 1,000 Salesforce employees](https://www.businessinsider.com/salesforce-layoffs-marc-benioff-mulesoft-hardest-hit-so-far-2023-1) were notified on Wednesday of their terminations. [blindsided yesterday](https://www.businessinsider.com/salesforce-managers-blindsided-by-companys-layoff-plans-2023-1) as they had no forewarning when the layoffs would commence, Salesforce employees told Insider. In addition to Slack, others impacted areas include recruiters and roles at MuleSoft, the data integration platform [Salesforce acquired for $6.5 billion in 2018.](https://www.businessinsider.com/one-year-after-salesforce-acquired-it-mulesoft-has-its-biggest-quarter-2019-3) The company also cut hundreds of sales jobs in November. [broader restructuring plan](https://www.businessinsider.com/salesforce-layoffs-marc-benioff-overhiring-profits-costs-economic-downturn-staff-2023-1) announced on Wednesday by Slack's corporate parent Salesforce. The deal was seen as a way for Salesforce to make an aggressive foray into workplace communications during the pandemic's rise in remote work. Butterfield said at the time that his exit had been planned in advance. The software giant intends to lay off 10% of its full workforce, which adds up to about 7,000 jobs based on Salesforce's last published workforce numbers for its [fiscal 2022 when it reported 73,461 employees.](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001108524/000110852422000013/crm-20220131.htm) Salesforce also intends to close some of its office locations in a further effort to cut costs. [announced his plans to leave the company,](https://www.businessinsider.com/slack-ceo-stewart-butterfield-to-exit-salesforce-in-january-2022-12) along with chief product officer Tamar Yehoshua, who had worked at Slack for three years.

Amazon said it's slashing about 18000 jobs and Salesforce announced the layoff of its 10% workforce this week.

The layoffs are expected to be complete by the end of the company’s fiscal year of 2024, and affected employees based in the U.S. Jassy said the cuts would impact more than 18,000 employees, and builds on the 10,000 [job cuts announced](https://www.aboutamazon.com/news/company-news/a-note-from-ceo-andy-jassy-about-role-eliminations) in November. “With this in mind, we’ve made the very difficult decision to reduce our workforce by about 10%, mostly over the coming weeks.” “Amazon has weathered uncertain and difficult economies in the past, and we will continue to do so,” he wrote. Salesforce acquired Slack for around $27.7 billion in 2020. Those initial cuts were linked to Amazon’s Devices and Books business and voluntary reduction offers for employees in its People, Experience, and Technology (PXT) business. They’re not in heavy people expansion mode every year.” [announced](https://investor.salesforce.com/press-releases/press-release-details/2022/Bret-Taylor-to-Step-Down-as-Salesforce-Vice-Chair-and-Co-CEO-Marc-Benioff-to-be-Chair-and-CEO/default.aspx) in November that its co-CEO and Vice Chair Bret Taylor will step down at the end of this month and that Slack CEO Steward Butterfield will also [leave](https://www.nytimes.com/2022/12/05/technology/slack-ceo-stewart-butterfield-salesforce.html) Salesforce this month. The company noted in a Securities and Exchange Commission (SEC) 8-K filing it would incur between $1.4 billion and $2.1 billion in charges connected to the cuts, with up to $1 billion linked to its fourth fiscal quarter of 2023. Company executives cited ongoing economic uncertainty and bloated payrolls. however, the majority of role eliminations are in our Amazon Stores and PXT organizations.” There was no specific mention of any job cuts at its [Amazon](https://www.sdxcentral.com/directory/amazon/) and [Salesforce](https://www.sdxcentral.com/directory/salesforce/) rang in the new year with [massive job cuts](https://www.sdxcentral.com/articles/analysis/cisco-to-cut-more-than-4000-jobs/2022/11/), the former announcing thousands of new job cuts and the latter [cutting](https://investor.salesforce.com/financials/sec-filings/sec-filings-details/default.aspx?FilingId=16294472) 10% of its workforce.