Salesforce to Lay Off 1% of Workforce

Salesforce to Lay Off 1% of Workforce

News by Roberto Orosa
Published: January 26, 2024

Cloud-based software firm Salesforce just announced that it will be cutting 700 jobs, which is equivalent to 1% of its total workforce.

According to a report by The Wall Street Journal, the tech giant still has 1,000 job openings available across various departments, indicating that the layoffs may be part of a strategic workforce adjustment rather than a sign of financial issues within the company.

Salesforce is the latest among a number of tech giants to implement layoffs since the start of the year. Last week, Google announced its plans to lay off workers from its hardware, ad sales, search and YouTube teams, affecting thousands of employees.

More recently, Riot Games announced 500 job cuts (or 11% of its workforce) in an effort to focus on improving its core live games, such as League of Legends, VALORANT, Teamfight Tactics and Wild Rift.

Salesforce Laid Off Thousands of Workers in 2023

Salesforce had undergone a workforce restructuring last year, reducing its staff by 10% and closing down a number of office locations.

These measures, made in response to its rapid expansion during the pandemic, aimed to optimize the company's operations and improve profit margins. The adjustments seem to have benefited the company, as evidenced by Salesforce's improved financial performance last year.

Salesforce also reported increased revenue in the second and third quarters of 2023, and revised its annual profit forecast upward, indicating a positive trajectory despite the ongoing workforce changes.

In a statement made in September, Salesforce outlined plans to hire over 3,000 new employees, signaling a continued commitment to growth and expansion.

This announcement followed earlier job cuts implemented in January last year, suggesting a strategic realignment of workforce priorities to drive profitability and operational efficiency.

Despite repeated attempts, Salesforce has not responded to requests for comments regarding this year's layoffs.

Editing by Katherine 'Makkie' Maclang

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