Salesforce announces layoffs of around 700 employees
Introduction
Salesforce, a leading US cloud software company, recently made the decision to lay off nearly 700 employees, the Wall Street Journal reported . The move comes as part of ongoing adjustments the company is making in response to various pressures, including investors' demand for faster profit growth.
Size of layoffs
Affected employees make up about 1% of Salesforce's global workforce, which totals approximately 70,000 employees. Despite this cut, the company is actively advertising about 1,000 new jobs, suggesting that these layoffs may be a routine adjustment at the start of the new year.
Context and background
In 2023, Salesforce laid off about 10% of its workforce due to increasing pressure from investors seeking accelerated profits. The company has also implemented cost-cutting measures, such as reducing employee benefits and imposing travel cost restrictions.
The recent layoffs, according to the Wall Street Journal, are aimed at streamlining the company's expenses. So far, Salesforce has not officially commented on reported layoffs.
Technology Industry Trends
Many global tech companies have seen a slowdown in growth since the outbreak of the coronavirus (COVID-19) pandemic, leading to layoffs over the past year. January has historically been a popular month for layoffs, as companies adjust budgets and plans for the new year. In January January 2023 alone, tech companies laid off nearly 90,000 employees.
Related developments
Recent estimates show that more than 20,000 employees at 80 tech companies have been laid off since the beginning of this year. The industry continues to face challenges, as companies reassess their strategies amid changing market conditions.
Q&A Section
Q1: Why does Salesforce lay off employees?
A1: Layoffs are part of Salesforce's efforts to respond to investor demands for faster profit growth and streamline company expenses.
Q2: How many employees are affected by the layoffs?
A2: About 700 employees, making up about 1% of Salesforce's global workforce, are affected by layoffs.
Question three: What is the broader trend in the tech industry regarding layoffs?
A3: Many tech companies around the world have seen a slowdown in growth, resulting in layoffs, with January becoming a popular month for such measures.
Explore recent layoffs at Salesforce, where nearly 700 employees have been affected. Get insights into the company's response to investor pressure, ongoing recruitment initiatives, and broader trends in the tech industry. Be aware of the evolving landscape of the technology sector.