Key Points

  • The cost-cutting measures will include layoffs and the closure of some offices.
  • Real estate will be a key part of the restructuring process.
  • CEO Marc Benioff indicated that there could be more potential layoffs in the future.
  • The company is still growing and successful, despite the need to make these cost-cutting measures.

Salesforce the cloud-based software company, has announced plans to cut costs by $3 billion to $5 billion, according to an audio recording of a meeting between CEO Marc Benioff and company insiders.

This news follows Salesforce's announcement that it would be laying off 10% of its workforce and closing some offices, as rapid expansion during the pandemic left the company with a bloated workforce amid an economic slowdown.

Real estate will be a key part of the cost restructuring process, Benioff told employees in the meeting. He added that the company is still growing and doing well, despite the need to make these cost-cutting measures.

Salesforce Ceo Marc Benioff (Wikipedia)

In fact, Benioff indicated that there could be more potential layoffs in the future, according to CNBC, which cited people who attended the meeting. Benioff reportedly pointed to low productivity among new account executives as a reason for these potential future layoffs.

It's worth noting that Salesforce is not alone in its efforts to cut costs. Many big tech firms have slashed thousands of jobs in the past year, in preparation for a potential recession as interest rates rise around the world in an effort to curb inflation. These cost-cutting measures are seen as a way for these companies to weather any economic storm that may come their way.

In the face of these challenges, Salesforce remains a strong player in the tech industry. The company has a diverse range of products and services, and its focus on customer relationship management has made it a go-to solution for many businesses. With its extensive global presence, including 110 offices in 89 cities around the world, Salesforce has a strong foundation on which to build as it navigates these uncertain times.

Despite the need to make cost-cutting measures, Benioff reassured employees that the company is still committed to its values and to maintaining a positive work culture. In the company blog post announcing the layoffs, Benioff wrote, "We will always be a values-led company and that means being transparent, honest and open with our employees."

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It's clear that Salesforce is facing some challenges as it looks to streamline its operations and cut costs. However, the company's strong leadership and commitment to its values will no doubt see it through these difficult times. With a diverse range of products and services, a focus on customer relationship management, and a global presence, Salesforce is well-positioned to continue its success in the tech industry.

About Salesforce, Inc.

  • Ticker CRM
  • Exchange NYSE
  • Sector Technology
  • Industry Software—Application
  • Shares Outstandng 1,000,000,000
  • Market Cap $270B
  • Description
  • Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Its Customer 360 platform empowers its customers to work together to deliver connected experiences for their customers. The company's service offerings include Sales to store data, monitor leads and progress, forecast opp...
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