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Salesforce Slashes 10% Of Workforce As Job Cuts ‘Escalate’

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Salesforce has unveiled plans to cut 10% of staff and scale back its office space, citing concerns surrounding an economic downturn. “The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions,” Marc Benioff, the CEO, said to employees. Salesforce is just the latest tech giant to unveil job cuts as fears of an economic downturn and higher interest rates loom large over the industry.

Full Video Transcript Below:

J.D. DURKIN: Alright. Let's talk Salesforce  (CRM) - Get Free Report as well. What's behind that company laying off 10% of its workforce, Martin?

MARTIN BACCARDAX: Yeah, it was a big number this morning. It surprised me, J.D. there's 56,000 people who work for Salesforce around the world. So this is no joke with regards to potential job cuts. Marc Benioff is now the standalone CEO. Bret Taylor, his co-CEO, was walking away from the company at the end of the month. So this is a chance for Benioff to put his stamp on the enterprise software group. He's going to do it with this significant restructuring plan, not only job cuts, but closing some offices and paring down costs elsewhere.

He's going to take a billion dollar hit to fourth quarter earnings as a result of it. But again, J.D., this just echoes the paring back we are seeing in hiring in the tech sector, the job cuts that we are seeing escalating into 2023 and the expectations that it likely means for corporate spending. And that's never a good sign when you are debating whether or not you're heading into recession or not.

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