CRM major Salesforce has revealed that it plans to cut jobs by 10 percent and close some offices amid an economic slowdown.
The US-based software firm said the job cuts would lead to about $1.4 billion to $2.1 billion in charges, while only about $800 million to $1 billion will be recorded in the fourth quarter of 2022.
Businesses that relied on cloud services during the Covid-19 pandemic are trying to cut expenses and are delaying new projects, hurting companies such as Salesforce and Microsoft. Software major Microsoft is yet to officially announce a job reduction.
“The business environment remains challenging and our customers are taking a more measured approach to their purchasing decisions,” Salesforce co-Chief Executive Officer Marc Benioff said in a letter to employees.
“As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that.”
Salesforce had nearly 80,000 employees at the end of the third quarter, up from about 70,000 a year earlier.
Salesforce said in its quarterly regulatory filing that it increased headcount to meet the higher demand for services.
Salesforce, the #1 CRM company, has reported third quarter revenue of $7.84 billion (+14 percent) and net income of $210 million.
