Salesforce to cut 10% jobs and close some offices

CRM major Salesforce has revealed that it plans to cut jobs by 10 percent and close some offices amid an economic slowdown.
Salesforce technology for retail
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.