Salesforce let go of hundreds of employees on Monday

Salesforce let go of hundreds of employees on Monday

Salesforce is one of the latest tech companies to let go of employees, according to a report from CNBC. People familiar with the matter revealed that Salesforce let go of less than 1,000 people on Monday, but no exact figure was provided. Companies cutting back on staff numbers is becoming very common as business leaders realize the economy is getting worse and custom is simply going away.

As of January, Salesforce had 73,541 employees. In August, the company revealed that year-over-year, its headcount had increased by 36%, so the latest round of layoffs will still leave the firm with more employees than it had in August 2021. It said the reason for the growth in employees was because it had seen higher demand for services from customers. With the economy the way it is, it’s not clear if Salesforce will have to trim numbers further.

Amy Weaver, Salesforce’s finance chief, said in August that demand among small and medium-sized businesses in North America and Europe slowed down. Sectors that reduced their demand for Salesforce’s services included communications, consumer goods, media, and retail. As business falls, Salesforce sees a need to reduce costs and this comes in the form of making employees redundant.

It’s not known which sectors of the business will be most impacted by the cuts, but some other tech firms, like Meta, are trimming their recruiting teams as hiring is being frozen or slowed. This could be the case at Salesforce too because it previously decided to freeze hiring until 2023, according to Protocol.

Source: CNBC and Protocol