Entertainment

Salesforce Inc to chop workforce by 10% as it faces economic downturn

By FactsWow Team

Posted on: 05 Jan, 2023

In its recent announcement, Salesforce Inc has planned to chop 10% of its workforce, ready to make a terrible impact on 7,000 employees, and also has plans to close offices.

Credits: The Monitor

Salesforce CEO in his letter to employees

Based on the letter to employees, the CEO of Salesforce, Marc Benioff, pointed out that the current challenging environment forced the company to the decision. The Pandemic increased the revenue and made the company hire more workforce, leading to an economic downturn, and the company is suffering now.

Credits: Forbes

Reason for chopping 10% workforce

Benioff stated that Salesforce had hired too many employees via the Pandemic during the boom times, a problem shared by other businesses that had to make major layoffs during the previous year. Salesforce reported 79,000 employees in February last year, a 30% rise from 2020.

Credits: CNBC

Decline in workforce reflects in fourth quarter

According to the company's statement on Wednesday, this cutting workforce results in charges between $1.4 billion to $2.1 billion, of which only $800 million to $1 billion will affect the fourth quarter results.

Credits: Nation World News

Increase in Salesforce employees

At the end of the third quarter, Salesforce employed reached 80,000 employees, up from around 70,000 a year earlier. The company's quarterly regulatory statement stated that it had increased staff to accommodate the higher demand for services

Credits: San Francisco Chronicle

Decline in growth of the company

On Wednesday, shares of Salesforce increased by 3%. In 2022, they lost around half their value as Salesforce reported sluggish growth for four straight quarters.

Credits: AFR

Compensation granted for employees

According to Benioff, those impacted in the United States will receive a 'minimum' of nearly five months' pay, in addition to health insurance and 'other benefits to help with their transition,' and employees of other offices are likely to expect the same support.

Credits: NPR

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