Salesforce Cuts 10% of Workforce Amid Ongoing Tech Layoff Wave
Salesforce announces plans to lay off approximately 8,000 employees and reduce its office footprint as part of a major restructuring effort. CEO Marc Benioff admits the company hired too many people during the pandemic boom.
The tech industry's wave of layoffs continues into 2023 as Salesforce announces plans to cut approximately 8,000 employees, which represents about 10% of its total workforce. CEO Marc Benioff attributes this difficult decision to a challenging economic environment where customers are taking a more measured approach to their purchasing decisions. Affected U.S.-based employees receive five months of pay, health insurance, and career resources to help with their transition.
Alongside the workforce reduction, Salesforce is significantly shrinking its office space footprint and scaling back real estate holdings as part of a broader restructuring strategy. The company outlines these measures in a recent SEC filing, noting that the changes aim to reduce operating costs and improve operating margins. The workforce restructuring continues until the end of Salesforce's 2024 fiscal year, while the real estate adjustments extend through 2026.
Benioff takes personal responsibility for the layoffs, admitting that the company hired too many people as revenue accelerated during the pandemic. Salesforce currently employs around 80,000 workers, a massive increase from just 50,000 employees three years ago. This reduction follows similar headcount cuts at other major tech giants like Meta, Amazon, and Twitter, proving that the sector's staffing corrections are far from over.