Salesforce layoffs

Salesforce expects to incur about $1.4 billion to $2.1 billion in charges, of which about $800 million to $1 billion will be recorded in the fourth quarter ...

[Subscribe](https://economictimes.indiatimes.com/subscription?newslettertype=div_3125&email=2&utm_source=newsletter&utm_medium=email&utm_campaign=DailyTop5)to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox. [technology](https://economictimes.indiatimes.com/tech)and [startup news](https://economictimes.indiatimes.com/tech/startups)that matters. The letter added. [revealed that Salesforce was gearing up to lay off as many as 2,500 employees](https://economictimes.indiatimes.com/tech/information-tech/software-firm-salesforce-lays-off-hundreds-of-employees/articleshow/95395532.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst)in a fresh round of job cuts, following the footsteps of Big Tech firms. In August 2022, Salesforce said in a filing that headcount rose 36% in the past year "to meet the higher demand for services from our customers". "The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions," co-chief executive officer Marc Benioff wrote in a letter to his employees, according to the report.

Marc Benioff acquired MuleSoft for about $6.5 billion in 2018. The business has struggled to compete with AWS, Microsoft and others.

[stoked many Salesforce employees' fears](https://www.businessinsider.com/salesforce-rank-employees-more-layoffs-marc-benioff-2022-12) in a recent all-hands when asked about the possibility of future layoffs and how the company planned to balance cost-saving with employee morale. Contact Ellen Thomas via email ( [[email protected])] or on Signal: ( [+1-646-847-9416]). A Salesforce spokesperson referred Insider to the email when asked for comment on the details of this report. At the time, that officially made MuleSoft one of the company's slowest-growing units. Executives acknowledged the slowdown, saying MuleSoft was facing "scaling challenges." When the pandemic subsided, and economic growth slowed, Salesforce experienced a slowdown, too. [who recently spoke to Insider](https://www.businessinsider.com/salesforce-bret-taylor-tech-layoffs-marc-benioff-succession-crisis-2022-12?utm_medium=referral&utm_source=yahoo.com) said there's been rising internal pressure to increase sales in the wake of economic headwinds and the interest of activist investor Starboard Value, [which disclosed a significant stake in Salesforce in October.](https://www.starboardvalue.com/wp-content/uploads/2022-Active-Passive-Investor-Summit-Wix.com-Ltd.-Splunk-Inc.-Salesforce-Inc.pdf) They asked not to be identified discussing sensitive topics. Salesforce went on a hiring binge during the pandemic, after COVID-19 forced companies to work remotely and use more cloud-based software services. [identify their bottom 10% of performers](https://www.businessinsider.com/salesforce-rank-employees-more-layoffs-marc-benioff-2022-12). [Salesforce](https://www.businessinsider.com/salesforce-layoffs-marc-benioff-overhiring-profits-costs-economic-downturn-staff-2023-1) has already laid off about 1,000 employees as part of a [plan](https://www.businessinsider.com/salesforce-managers-blindsided-by-companys-layoff-plans-2023-1) to slash 10% of its workforce, and the [MuleSoft](https://www.businessinsider.com/one-year-after-salesforce-acquired-it-mulesoft-has-its-biggest-quarter-2019-3) unit was the hardest hit so far, insiders said. [Marc Benioff](https://www.businessinsider.com/salesforce-bret-taylor-tech-layoffs-marc-benioff-succession-crisis-2022-12) announced the overall plan in an [email to staff](https://www.sec.gov/Archives/edgar/data/1108524/000110852423000003/ex991-lettertoemployees.htm) on Wednesday, saying the cuts will happen "mostly over the coming weeks."

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.

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.

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.

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).

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.

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.

"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:

Salesforce is cutting 10% of its global workforce, equating to around 8,000 jobs which will be lost. · Amazon is also cutting a much higher number of employees ...

This Kit uses AI to predict the performance over the coming week in four tech verticals. This happens every week, making sure the decisions are always up to date. Analysts expect there could be more job cuts in the months and years ahead as Amazon tries to stay afloat in this tough economy. Most of the layoffs will come from the consumer retail division and the HR department. In the short term, layoffs aren’t always considered a bad thing for a company's stock price. Under the new system, Google believes that 6% employees will fall into a danger zone category, which would put them at higher risk for a performance review. This means job cuts and delays on new projects, which is putting the squeeze on companies like Salesforce and Microsoft. It comes down to the reason behind them. The new system will make it harder for employees to get high marks and easier for them to receive low ratings. Maybe you thought that with the start of a new year, the damage of 2022 would be behind us. This will come from severance packages and stock buyouts to a well compensated payroll. Salesforce is taking action to reduce costs and streamline its operations amid economic challenges heading into 2023.

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.