Salesforce, a prominent cloud software company in the United States, has recently announced a significant staff reduction, parting ways with approximately 700 employees, as reported by The Wall Street Journal, this move affects around 1% of the company’s global workforce, which numbers around 70,000.
Despite the layoffs, Salesforce continues to advertise about 1,000 new job openings, suggesting that this decision might be part of a regular workforce adjustment at the beginning of the new year.
In 2023, Salesforce had reduced its workforce by about 10% due to mounting pressures from investors seeking quicker profit growth than planned, additionally, the company made cuts in employee benefits and imposed restrictions on travel expenses.
An inside source cited by The Wall Street Journal indicated that the recent layoffs are part of an effort to focus the company’s expenditures. To date, Salesforce has not officially commented on these reports.
The tech sector has been experiencing a slowdown in growth following the decline of the COVID-19 pandemic, leading to significant layoffs across the industry.
Estimates suggest that more than 20,000 employees from around 80 tech companies have been laid off since the start of this year.
January has historically been a common month for tech layoffs, as companies adjust their budgets and plans for the new year. In January 2023, the tech industry saw the dismissal of around 90,000 employees.
This trend reflects the broader challenges faced by the tech sector, including Salesforce, in navigating the current economic landscape.
