He also took personal responsibility for the overhiring. The company's second-quarter revenue of $5.15 billion was a 29% increase from a year ago, part of an earnings report that sent shares up 25% that day and created billions of dollars in shareholder value. But there is a bigger trend at play. 10% of the workforce was impacted. It's not all bad news: Analysts at Bernstein reckon that "cloud should be the most defensive segment of Big Tech" even amid all these macro trends, given that companies are unlikely to completely abandon their reliance on the major platform providers even in a worst-case economic scenario. Marc Benioff, co-chief executive officer of Salesforce.com Inc., between panel sessions on day two of the World Economic Forum in Davos, Switzerland, on May 24, 2022. US cloud-based software company Salesforce has laid off hundreds of employees. The Salesforce layoffs on Thursday saw the company laying off 4,000 workers as it looks to reach that 10% in job cuts. Enterprise software company Salesforce is gearing up to lay off as many as 2,500 employees in a fresh round of job cuts, following the footsteps of Big Tech firms. A report by Protocol, the publication that was the first to report about the layoffs in Salesforce, claimed that job cuts by the company could affect as many as 2,500 workers. However, Salesforce's recent layoffs are a sign that even platforms may not be considered as mission-critical as they were a year ago. These layoffs are also probably another step in appeasing the demands of the activist investors. Powered and implemented by FactSet. The San Francisco-based cloud software company is being reticent about the cuts but said it would shed under 1,000 workers, per TechCrunch. 1125 N. Charles St, Baltimore, MD 21201. 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Contact this reporter via email atpzaveri@insider.comor Signal at 925-364-4258. Sign up for notifications from Insider! Robert Bollinger: Meet the Man Behind Mullens Push Into Commercial EVs, A.I. At the same time, the industry has been pummeled by a seemingly perfect storm of economic factors over the past year, including rising interest rates, looming recession fears and consumers and businesses rethinking expenses. Layoffs in 2023: Google, Microsoft, Salesforce and more fire thousands Kyodo via Newscom, FILE Salesforce pays Matthew McConaughey reported $10m/year | Fortune Copyright 2023 CBS Interactive Inc. All rights reserved. At the end of January, Salesforce employed 73,541 people, and in August the company said that its staff numbers grew by 36 percent in the past year. The company's second-quarter revenue of $5.15 billion was a 29% increase from a year ago, part of an earnings report that sent shares up 25% that day and created billions of dollars in shareholder value. As the flow of money into their coffers slows, expect deeper cost cuts, more severe austerity measures, and perhaps even more layoffs. 18.5K 164 200. As tech stocks have tanked and business-to-business sales have slowed, Salesforce has cut back on the added workforce. A Salesforce spokesperson confirmed to SFGATE that Thursdays layoffs were part of the round announced in January. The meeting had been scheduled for an hour but ran for over two hours, another person said. Salesforce layoffs Just got laid off this morning. Salesforce's Second Round Of Layoffs Is An Uncommon Sight See inside for details on which companies are reducing staff to increase cash flow. Snap Inc. has confirmed that the company will lay off 20% of its employee workforce, which accounts for approximately 1,300 people (September, 2022) The layoff news was confirmed by Snap spokesman on August 31st, 2022 noting the layoffs were in an attempt to bring down costs. Legal As an avid bargain-hunter, you can be sure that any deal Craig finds is top value! Marc Benioff, Salesforce's chair and co-CEO, announced in a later to employees the company would be laying off 10% of its workforce. Oracle, Salesforce Layoffs 2022: Targeted Job Cuts At Software Giants About half of Salesforce account executives brought in more than 95% of deals, he told the employees, according to two people who attended by video. In an interview with CNBC shortly after reporting quarterly earnings, Benioff said: "This is a victory for stakeholder capitalism because I think, you know, that we did a great job for our shareholders this quarter, but we also did a great job for our stakeholders, as well. Tech companies are shrinking their workforce for the first time in years as they reckon with slowing growth, rising interest rates and a potential recession. Benioff said employees being released will receive nearly five months of pay, health insurance, career resources and other benefits. Benioff expressed concerns about productivity in parts of the sales organization. Much like Freddy Krueger, that nightmare is now becoming a reality: Salesforce, the cloud software company that less than a year ago was boasting of its ability to survive a market downturn, announced on Wednesday that it's cutting 10% of its staff representing about 7,000 jobs and closing some of its offices. Hear of anything going on at Salesforce or another tech company? By clicking Sign up, you agree to receive marketing emails from Insider Salesforce is an investor in Crunchbase. In San Francisco, Thursdays layoff round hit 258 workers, affecting sales and customer service, technology and product and general administration, according to a WARN notice obtained by SFGATE. Salesforce Reportedly Paying McConaughey Millions Despite Layoffs However, add-ons and cloud software tools that aren't "mission critical" will see cuts. Around 65% of tech companies that conducted a second or third round of layoffs were private startups. Since the beginning of 2022, the IT industry has seen more than 1,100 salesforce layoffs, and more than 180,000 employees have lost their jobs.However, the wind of layoffs has not ended yet. Sign up below to get this incredible offer! Theres even room for more lines. Those outside the United States "will receive a similar level of support," Benioff wrote. BioSpace Layoff Tracker 2022: Axcella Therapeutics, TherapeuticsMD, Instil Bio and More Cull Staff. These tech companies have imposed major layoffs in 2022 Investors are mounting big bets against these 2 A.I. Mass Layoffs in 2022 & 2023: What's Next for Employees? Tech giants Poshmark and Ericsson were just a couple of the companies that announced sweeping layoffs this week. First major layoffs of 2023 come from Salesforce. The San Francisco cloud computing software company will also be closing some offices, according to a regulatory filing Wednesday. (PR pitches by email only, please.). Theres a seemingly much larger headcount reduction coming to Facebook, and in a very severe blow to downtown San Francisco, or at least its reputation and prestige, Protocol reports that Salesforce will be laying off a couple thousand employees in a process that apparently already started on Monday. Salesforce layoffs: Salesforce becomes the latest company to lay off Key takeaways. The Salesforce layoffs involved roughly 90 contract workers a fraction of the company's 73,000 person workforce, Protocol reported.The bigger issue may involve a Salesforce hiring freeze that . The cloud . Got a confidential news tip? 2023 InvestorPlace Media, LLC. Salesforce pays Matthew McConaughey $10 million a year amid layoffs Weather | Father and two girls stranded in snowstorm for 13 hoursNews | New report shows thousands of workers have left downtown SFLocal | Bald eagles nesting at Bay Area golf course could lay eggs 'any day now'Tahoe | How much snow did Tahoe get? Salesforce is laying off about 10% of its workforce, more than 7,350 employees, in the latest round of job cuts in the tech industry as corporations cut back on software and other spending. On one hand, Salesforce already had a much smaller round of layoffs (90-ish) earlier this year, so this is not unprecedented. Contact tech reporter Stephen Council securely at stephen.council@sfgate.com. Salesforce lays off workers as tech, banks buckle under interest rate It's possible some of those laid off may find other roles with Salesforce, the spokesperson added. In addition, Salesforce reportedly laid off workers recently and has implemented a hiring freeze through January. The company fueled its growth in part through large acquisitions such as Slack and Tableau. Free insights on Salesforce Layoffs. And if you want to get deep into the reeds, Protocol has the details of some active investor drama that may or may not be driving these layoffs. Salesforce to Lay Off 10% of Staff and Cut Office Space Details: Salesforce confirmed that it has made the cuts, and its statement suggests it selected who would be laid off based on performance. Layoffs increase the odds of suicide by two and a half times.
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