Salesforce

Salesforce Inc. rose after saying it would cut about 10% of its workforce and reduce its real estate holdings. The enterprise software company hired too ...

As much as $1 billion of that will come in its fiscal fourth quarter. [regulatory filing](/news/terminal/RNYL0YBLKPOG), and cost the company $1.4 billion to $2.1 billion. [Salesforce Inc.](/quote/CRM:US) will cut about 10% of its workforce and reduce real estate holdings after the enterprise software company said it hired too many people during the pandemic-fueled boom and is adjusting to more cautious spending by customers.

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.

2023 is looking awfully similar to 2022, as another high-profile employer in the United States is reducing headcount ahead of an anticipated recession.

It said it needs to cut costs after rapid pandemic hiring left it with 'too many people' amid an economic slowdown.

[filing](https://www.sec.gov/Archives/edgar/data/1108524/000110852422000060/crm-20221031.htm) that it increased headcount “to meet the higher demand for services”. “This is a smart poker move by Benioff to preserve margins in an uncertain backdrop as the company clearly overbuilt out its organization over the past few years along with the rest of the tech sector with a slowdown now on the horizon,” Wedbush analyst Dan Ives wrote in a client note. The cloud-based software company said on Wednesday that it expects between $1.4bn and $2.1bn in charges due to the job cuts, of which about $800m to $1bn will be recorded in the fourth quarter.

E-commerce giant Amazon and business software maker Salesforce are the latest US technology companies to announce major job cuts as they prune payrolls that ...

Salesforce also said it would be closing some of its offices, but did not include locations. Mr Benioff pioneered the method of leasing software services to internet-connected devices – a concept now known as “cloud computing”. Before Wednesday’s announcement, shares had plunged more 50 per cent from their peak close to $US310 in November 2021. The shares gained nearly 4 per cent on Wednesday to close at $US139.59. The announcement on Wednesday (Thursday AEDT) included earlier job cuts that had not been numbered. Amazon said it would cut about 18,000 positions.