News: Salesforce plans to slash 1,000 jobs globally

Employee Relations

Salesforce plans to slash 1,000 jobs globally

The cuts are taking place in more than a dozen Salesforce locations around the world.
Salesforce plans to slash 1,000 jobs globally

Salesforce.com Inc. plans to slash about 1,000 jobs, as it aims to streamline its business even as it reports record quarterly revenue and forecasts further gains.

A Salesforce spokeswoman said, “We’re 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 map to 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.”

The cuts are taking place in more than a dozen Salesforce locations around the world, including in Canada. Sales and customer-support roles are among those being eliminated. Its employees in the Asia Pacific region including India will also be impacted as a result of the move.

Chief Executive Officer Marc Benioff said in a Bloomberg TV interview that the decision to cut jobs has always been difficult.

Marc 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.” 

He added that every year, Salesforce will “rebalance” 5% to 10% of its workforce to focus on strategic areas.

The cuts come while Salesforce reported that revenue climbed 29% to $5.15 Bn. Interestingly, in March had pledged that the company wouldn’t conduct any “significant” layoffs for 90 days. The company also raised its forecast for annual sales, signaling that the demand for digital transformation has spiked, which is also favoring the software maker. The company will give the employees 60 days to search for a new job within the Salesforce organization.

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Topics: Employee Relations, #COVID-19

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