edited by: Mohammad Haris
Last Update: January 05, 2023, 10:30 AM IST
Salesforce employs approximately 73,500 people.
Amazon’s CEO also says the layoffs will now increase to more than 18,000 roles as part of previously reported workforce reductions
Salesforce, a San Francisco-based cloud computing software company, is laying off more than 7,350 employees, or in the latest round of job cuts in the tech industry, as corporations cut software and other expenses. The company will also close some offices.
In a letter to employees, Salesforce CEO Marc Benioff said, “The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions… With this in mind, we have reduced our workforce by approx. Have made the very difficult decision to do 10 percent, mostly in the coming weeks.”
Benioff, who co-founded Salesforce in 1999, recently became sole CEO after Brett Taylor resigned as co-CEO and vice president in November. Benioff said the laid-off employees would receive approximately five months’ pay, health insurance, career resources and other benefits.
Wedbush analyst Dan Ives said, “It’s a smart poker move by Benioff to preserve margins in an uncertain backdrop as the company has clearly positioned its organization over the past few years with a recession on the horizon, along with the rest of the tech sector.” has made.” Wrote in client note.
Salesforce employs approximately 73,500 people.
The company estimates $1.4 billion to $2.1 billion in charges related to its plan. This includes $1 billion to $1.4 billion in charges related to employee transitions, severance pay, employee benefits and stock-based compensation. The fee for closing the office will be $450 million to $650 million. It is expected to take a charge of approximately $800 million to $1 billion in its fiscal fourth quarter.
Tech companies hired aggressively during the pandemic to meet rising demand, but Salesforce had been growing rapidly since at least 2018. Its workforce is slated to more than double between then and 2021.
The employee restructuring efforts are expected to be completed by the end of Salesforce’s fiscal year 2024. The closure of its offices is expected to be fully completed in FY2026.
Meanwhile, Amazon Chief Executive Officer Andy Jassy has also said in the latest public staffing note that the layoffs will now add up to more than 18,000 roles, as part of previously disclosed workforce reductions. The company began letting go of employees from its device division in November. The tech industry is set to lay off more than 150,000 workers in 2022, according to tracking site Layoffs.fyi.
(with inputs from agencies)
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