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Software firm Salesforce lays off hundreds of employees

Software firm Salesforce lays off hundreds of employees
Business1 min read
Enterprise software company Salesforce has now laid off hundreds of employees, as Big Tech firms navigate through an economic slowdown.

Protocol first reported that Salesforce was preparing for a major round of layoffs that could affect as many as 2,500 employees.

The company, however, told media publications that the job cuts affected "less than a thousand" employees.

The enterprise software maker confirmed it sacked employees earlier this week.

"Our sales performance process drives accountability. Unfortunately, that can lead to some leaving the business, and we support them through their transition," the company said in a statement.

The company had 73,541 people on its payroll earlier this year.

In August, Salesforce said in a filing that headcount rose 36 per cent in the past year "to meet the higher demand for services from our customers".

According to Protocol, Salesforce previously laid off roughly 90 contract workers and implemented a hiring freeze through January 2023.

"Investors are increasingly demanding a greater return from Salesforce, which has always funneled its profits toward growth, including spending billions to acquire companies like Slack and Tableau," the report mentioned.

Salesforce is also reportedly facing pressure from activist investor Starboard.

Microsoft, one of Salesforce's top competitors in business software, announced a round of job cuts in October this year.
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