Salesforce lays off hundreds of workers

Salesforce joined other tech companies in laying off workers this week, confirming the move in a statement to Fierce. However, a source familiar with the matter indicated the cuts aren’t as deep as initial reports suggested.

Protocol was the first to flag the layoffs on Tuesday. The outlet said the move could impact as many as 2,500 people. But a source told Fierce that figure wasn’t accurate. Instead, the source said the cuts impacted hundreds rather than thousands of workers.

As of January 31, 2022, the company had 73,541 employees, with approximately 55 percent of these located in the United States. None of its employees were members of a labor union, the company stated in a 10-K filing.

A Salesforce representative didn’t comment on the scale of the layoffs, but said the company did trim its workforce. “Our sales performance process drives accountability. Unfortunately, that can lead to some leaving the business, and we support them through their transition,” the representative said.

The representative didn’t specify what kind of support it is offering impacted workers.

Salesforce previously underwent a round of substantive layoffs in the second half of 2020. It cut around 1,000 workers in August, but the following month announced plans to add 12,000 jobs over the course of 12 months. At the time, Salesforce had around 54,000 employees.

The cuts this week come after Salesforce posted fiscal Q2 2023 revenue in August which was up 22% year on year to $7.72 billion but net income which fell from $535 million to $66 million. For its full fiscal year the company predicted  revenue will be up approximately 17% to between $30.9 billion and $31 billion. It also announced a $10 billion share repurchase program.

Salesforce joins a growing list of companies laying off workers. Comcast, Verizon, Zayo, Cox Communications and Dell Technologies all confirmed cuts to Fierce. Twitter, Meta, Starry and Microsoft all also slashed a significant number of workers.