Salesforce.com Inc. plans to slash about 1,000 jobs, which is close to 2 percent of its workforce. Salesforce which has nearly 54,000 employees in 66 offices globally has started to notify some of its staff that they could lose their job
This news came in just a day after the company reported record sales of USD 5.15 billion, sending its stock surging by 26 percent.
Salesforce reported a quarterly profit of USD 2.63 billion, with revenue growth of 29 percent from the previous year.
Employees affected by the cuts will be given 60 days to find a new job within the company and will have access to internal resources to help them in their search.
For those who don’t land new positions, Salesforce will offer compensation and pay benefits for six months.
Experts say this move by the software giant is to streamline its business even as it reports record quarterly revenue.
Salesforce did not reveal whether the jobs would be cut geographically or by division or type. It has 56,000 employees worldwide.
The cuts are taking place in more than a dozen Salesforce locations around the world. Sales and customer-support roles are among those being eliminated. Its employees likely in the Asia Pacific region including India will also be impacted as a result of the move.
However, Salesforce Chief Executive Marc Benioff in March has promised that the company would avoid any significant layoffs for 90 days during the pandemic even as the company shifted to remote working. He called on other CEOs to follow his pledge.
Benioff now said, “There is no lifetime employment at Salesforce. Everything is performance-based. We are going to make job changes and shift and evolve as our markets shift and as our customers shift. The decision to cut jobs has always been difficult.”
He added, “Every year, Salesforce will rebalance 5 percent to 10 percent of its workforce to focus on strategic areas.”
A Salesforce spokeswoman added to the information and asid, “We are reallocating resources to position the company for continued growth. This includes continuing to hire and redirecting some employees to fuel our strategic areas, and eliminating some positions that no longer match our business priorities. For affected employees, we are helping them find the next step in their careers, whether within our company or a new opportunity.”
Not Salesforce but, Accenture that has over
5 lakh employees globally announced to cut at least 5 percent of its
low-performing workforce. Microsoft-owned LinkedIn also said in the month of July
that it would lay off 960 employees.