Salesforce to reportedly cut 10% workforce

Salesforce Inc is reportedly planning to cut jobs by 10% and close some offices amid an economic slowdown. The company aims for the workforce restructuring to be substantially complete by the end of fiscal 2024. It will also reduce its real estate holdings in a plan that is expected to be completed in fiscal 2026.

In a letter to its employees, Salesforce co-Chief Executive Officer Marc Benioff said, “The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions. 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.”

The cloud-based software firm said that it increased headcount during the pandemic to meet the higher demand for services. It added that 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.

Many of the affected employees will receive a minimum of about five months of pay, health insurance, career resources, and other benefits. Those outside the U.S. will receive similar support aligned with local employment laws. Salesforce had nearly 80,000 employees at the end of the third quarter, up from about 70,000 a year earlier.