(Bloomberg) -- Hedge fund Elliott Investment Management has taken a substantial activist stake in Salesforce Inc., swooping in after layoffs and a deep stock swoon at the enterprise software giant.

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“Salesforce is one of the preeminent software companies in the world, and having followed the company for nearly two decades, we have developed a deep respect for Marc Benioff and what he has built,” said Jesse Cohn, managing partner at Elliott, referring to the company’s co-chief executive officer and chairman. “We look forward to working constructively with Salesforce to realize the value befitting a company of its stature.”

Elliott’s holding is a multibillion-dollar stake, according to a person familiar with the matter who asked not to be identified because the details are private. San Francisco-based Salesforce had a market capitalization of $151 billion at Friday’s close, down from a peak of more than $300 billion in 2021.

The move by Paul Singer’s Elliott — which often pushes for strategic changes and seeks board representation — adds to activist pressure on Salesforce to boost profits and shareholder returns after a half-decade of fast hiring and large acquisitions, including the purchase of Slack in 2021 for $27.7 billion. Salesforce said this month it’s reducing its real estate footprint and cutting 10% of a workforce that has almost tripled in the past four years.

Shares of Salesforce rose about 1.7% in early trading Monday in New York. Elliott’s supportive remarks on Benioff offsets investor fears that the recent departure of senior company leaders will give Benioff freedom to make drastic acquisitions, Mizuho analyst Jordan Klein wrote in a note. Elliott’s track record of boosting capital returns also helps increase the stock’s attractiveness.