Observed Signal · Jan 5, 2023 · Workforce Reduction · Source: CMSWire · Impact: 3/5 · Sentiment: Negative
Salesforce Cuts 10% of Workforce Amid Economic Downturn
Salesforce Co-CEO Marc Benioff announced on Jan. 4, 2023, that the company would eliminate 10% of its workforce (around 8,000 employees) in response to over-hiring during the pandemic and a challenging economic environment. The layoffs, outlined in a letter to employees, include a generous severance package for US staff. Salesforce had 79,824 employees as of October 2022. The announcement follows a series of tech layoffs across Amazon, Meta, Adobe, Oracle, and Qualtrics amid recession fears. Activist investor Starboard Value, which had taken a significant stake in Salesforce, may have influenced the decision. Despite solid Q3 FY2023 revenue of $7.84 billion, Salesforce shares had fallen nearly 40% in 2022, reflecting investor concerns about its growth vs. profitability mix.
Salesforce is a major MarTech/CRM vendor; a 10% workforce cut signals broader tech downturn and potential impact on enterprise software spending, but it is not a fundamental shift in advertising technology specifically.
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Key Takeaways & Evidence Grounding
- Salesforce announced a 10% workforce reduction, affecting approximately 8,000 employees.
- CEO Marc Benioff took responsibility for hiring too many employees during the pandemic.
- Salesforce reported 79,824 global employees as of October 2022.
- US employees affected by layoffs will receive at least five months of pay, health insurance, and career resources.
- Salesforce's Q3 FY2023 revenue was $7.84 billion, up 14% year-over-year.
Connected Companies & Entities
13 Entities mapped“Salesforce cut 10% of its workforce, or around 8,000 employees, according to CEO Marc Benioff's Jan. 4 letter to employees....”
“Amazon announced plans to cut 10,000 jobs... Amazon executed layoffs this week — affecting 18,000 employees...”
“Meta announced layoffs for 11,000 employees...”
“the company that bought Slack for $27.7 million two years ago...”
“In its Q4 and fiscal year 2022 revenue report, Adobe reported its digital experience segment revenue at $1.15 billion...”
“Oracle’s fiscal 2023 Q2 results revealed total quarterly revenues were up 18% year-over-year...”
“Qualtrics, a public customer experience and employee experience software company, saw layoffs last fall...”
“Activist investor Starboard Value, known as an advocate of corporate cost-cutting in order to raise share prices, may have also influenced t...”
“To meet surging demands from a public sequestered at home during COVID-19, some tech companies couldn’t recruit new staff fast enough (think...”
“Twitter, Zillow, Peloton, Cisco and others followed suit....”
“Wix, a website builder, also announced layoffs and other cost-cutting measures soon after Starboard announced a stake in it....”
“Twitter, Zillow, Peloton, Cisco and others followed suit....”
“Twitter, Zillow, Peloton, Cisco and others followed suit....”
Ontology Mapping & Concepts
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