Salesforce layoffs

The software company will lay off around 8000 people after going on a wild hiring spree during the pandemic.

[hiring freezes and limiting corporate travel](https://www.businessinsider.com/salesforce-slows-hiring-puts-hold-on-some-recruiting-control-expenses-2022-5) in May. In the early days of the pandemic, demand for Salesforce software and cloud products surged as many companies pivoted to working virtually. Tech companies were the In addition to layoffs, Salesforce is planning on reducing its office space footprint and scaling back its real estate holdings. “The environment remains challenging, and our customers are taking a more measured approach to their purchasing decisions. In November, the company began its first round of layoffs affecting [hundreds of employees](https://techcrunch.com/2022/11/08/salesforce-confirms-it-has-laid-off-hundreds-of-employees/). [Amazon](https://fortune.com/company/amazon-com/) which increased its workforce by [75%](https://www.bloomberg.com/news/articles/2021-10-29/amazon-boosted-workforce-by-75-during-covid-and-is-still-hiring) between 2020 and 2021. [12,000 new employees](https://twitter.com/Benioff/status/1306819210052427777) in the next year. [Meta](https://www.nytimes.com/2022/11/09/technology/meta-layoffs-facebook.html), and [Amazon](https://fortune.com/2022/11/14/amazon-plans-to-lay-off-10000-employees-report-new-york-times/) reducing headcounts last year. [filing](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001108524/000110852423000003/crm-20230104.htm) Wednesday, which is designed to “reduce operating costs” and “improve operating margins” at the company. [Salesforce](https://fortune.com/company/salesforce-com/) announced Wednesday it would be cutting as many as 8,000 employees in the coming weeks. [hiring](https://fortune.com/2022/12/02/november-jobs-report-employers-added-jobs-unemployment-remains-same/) more than they are firing, and layoffs have mainly been contained to sectors that overextended themselves during the pandemic.

Salesforce employee layoffs are due to slow sales growth, executive departures, hiring strategy and investment firm Starboard Value claiming a stake in the ...

“You’ve built our company—for all of our stakeholders — and you’ve shown incredible resilience every step of the way.” “With this in mind, we’ve made the very difficult decision to reduce our workforce by about 10 percent, mostly over the coming weeks.” [Salesforce’s](https://www.crn.com/news/cloud/salesforce-cuts-90-recruiters-amid-hiring-slowdown) massive round of [layoffs](https://www.crn.com/news/cloud/tech-layoffs-in-2022-23-companies-slashing-their-workforce) today, which will likely see over 7,000 Salesforce employees terminated this month.

Salesforce, which employs more than 2000 people in Ireland, has informed staff it will layoff around 10% of its workforce and close some offices.

Twitter also cut half its workforce following its takeover by Elon Musk. "Of the aggregate amount of charges that the company estimates it will incur in connection with the plan, the company expects that approximately $1.2bn to $1.7bn will be in future cash expenditures," Salesforce added. Salesforce expects that it will incur charges of $1.4bn to $2.1bn in connection with the restructuring plan, of which $800m to $1bn will be incurred in the fourth quarter of its 2023 financial year.

The software company plans to cut around 8000 jobs as business slows for tech companies. “We hired too many people leading into this economic downturn,” ...

[Meta](https://www.nytimes.com/2022/11/09/technology/meta-layoffs-facebook.html), which owns Facebook and Instagram, cut 13 percent of its employees in November and said its head count would remain “roughly flat” through the end of this year. [Snap](https://www.nytimes.com/2022/08/31/technology/snap-layoffs-restructuring.html), Snapchat’s parent company, laid off 20 percent of its employees in August, blaming challenging macroeconomic conditions. In December, Stewart Butterfield, the chief executive of Slack, a workplace communication platform owned by Salesforce, also said he would leave his position by the end of this month. Most of the cuts will be made “over the coming weeks,” he wrote. In November, Bret Taylor, Salesforce’s co-chief executive, announced that he would resign from his post and leave at the end of this month. More than 150,000 tech workers were laid off last year, according to Layoffs.fyi, a site that tracks job cuts. The company estimated that the changes would cost up to $2.1 billion. Salesforce’s revenue, like that of many other technology companies, boomed during the pandemic when more people around the world worked from home and relied more heavily on technology to collaborate with colleagues remotely. Benioff suggested that the company had hired too aggressively during that period. The layoffs cast the tech industry’s slowdown into even sharper relief. [ rushed to make cuts](https://www.nytimes.com/2022/11/10/technology/big-tech-layoffs.html). [layoffs](https://www.nytimes.com/2022/11/03/technology/tech-companies-hiring-freeze-job-cuts.html).

CNBC's Jim Cramer on Wednesday warned investors that the tech industry will likely see more layoffs due to continuing macroeconomic headwinds.

Nor am I saying that tech stocks can rally endlessly on cost cuts," he said. It won't be that. The cloud-based software firm had over 79,000 employees as of December. CNBC's Jim Cramer on Wednesday warned investors that the tech industry will likely see more layoffs due to continuing macroeconomic headwinds. - CNBC's Jim Cramer on Wednesday warned investors that the tech industry will likely see more layoffs due to continuing macroeconomic headwinds. Cramer said that while the industry is likely to see more cuts this year, investors should refrain from becoming overly optimistic about how tech companies and their stocks will fare once more employees are laid off.

Salesforce said on Wednesday (Jan 4) it would lay off about 10 per cent of its employees and close some offices, becoming the latest tech firm to undertake ...

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"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.

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:

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.

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.

Slack was purchased by Salesforce in July 2021 in a landmark deal. Over a year later, layoffs have hit.

At the time, it was unclear if the Salesforce layoffs included any of its subsidiaries, like Slack and Tableau. The San Francisco corporate communications firm is reportedly sacking around 10% of its staff as part of the broader Salesforce layoffs announced Wednesday, [San Francisco](https://sfgate.com/san-francisco) [tech](https://sfgate.com/tech) behemoth Salesforce, is reportedly conducting layoffs a day after its parent company announced that it will be decimating its staff in the coming weeks.