Salesforce, a major player in the tech industry, is reportedly laying off around 700 employees, equivalent to roughly 1% of its global workforce, as disclosed by the Wall Street Journal. This reduction comes as part of a series of job cuts affecting the tech sector, following the industry’s substantial hiring during the pandemic, with giants like Amazon and Google also witnessing waves of layoffs. While this move might appear as a downsizing, the report suggests a more nuanced perspective, pointing out that Salesforce still has 1,000 job openings across the company. This implies that the reduction could be part of routine adjustments to streamline the workforce, a strategic realignment rather than a drastic downsizing initiative, as indicated by an unnamed source in the report.
This round of layoffs follows a previous workforce reduction by Salesforce in the prior year, where the company trimmed 10% of its workforce and closed some offices to address a bloated workforce resulting from rapid pandemic-driven hiring. The strategic trimming positively impacted Salesforce’s earnings, contributing to increased revenue in the second and third quarters. Additionally, the move allowed the company to enhance its annual profit forecast. Notably, Salesforce had communicated in September of the previous year its intention to hire over 3,000 employees after the January job cuts, aiming to drive up margins and balance its workforce dynamics.
