Salesforce is laying off thousands more workers and closing offices

Salesforce on PC
(Image credit: Shutterstock.com / monticello)

Salesforce has announced a restructuring plan that could see the software giant lay off 10% of its workers in a bid to save money.

In an internal letter to staff, Salesforce co-Chief Executive, Marc Benioff, explained, “the environment remains challenging and our customers are taking a more measured approach to their purchasing decisions.”

The company estimates that the plan will likely cost between $1.4 billion and $2.1 billion, about $800 million to $1 billion of which shall be incurred during the fiscal fourth quarter.

Salesforce layoffs

Benioff said he takes responsibility for the company’s miscalculated decision to hire “too many people” after a successful post-pandemic period, but to continue with the current number of employees would be unsustainable. 

In the leadup to Christmas, CNBC reported that Benioff had asked employees on the company Slack channel why newer recruits were working less productively, while 2021 saw the company promise workers that they could work from home or assume a hybrid working routing if they chose to do so.

The cutbacks may come as no surprise to those familiar with the company, which had increased its headcount by 36% in the year leading up to August 2022 (via CNBC). Several hundred employees had already been made redundant in November 2022.

Salesforce isn’t the only company facing challenges from economic headwinds as it enters 2023. Amazon has recently taken out an $8 billion loan to use for “general purposes” as the company’s value continues to drop and speculations of job cutbacks seeing 10,000 at risk draw nearer.

For the optimistic, or the proactive, this may come as an opportunity to change careers. A recent ZipRecruiter report found that 79% of laid off tech workers found re-employment within three months, with similar success in the entertainment and leisure, transportation and delivery, and manufacturing sectors.

TechRadar Pro has asked for further comment on the suggested layoffs.

Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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