Salesforce Trims 10% of Workforce Amid Pandemic Hiring Overshoot
Salesforce reduces its staff by over 7,000 employees and closes select offices as CEO Marc Benioff admits the company hired too aggressively during the pandemic boom.
Salesforce reduces its global workforce by approximately 10%, impacting more than 7,000 employees, and closes offices in select markets. CEO Marc Benioff attributes this decision to a challenging economic environment where customers adopt a more measured approach to software purchasing. He acknowledges that the company hired too many people during the pandemic revenue boom and takes full responsibility for the overstaffing.
The company offers a support package to the affected U.S. employees that includes a minimum of nearly five months of pay alongside health insurance and other transition benefits. Workers outside the U.S. receive a similar level of support during their departure. This major staff reduction follows an earlier round of layoffs in November and the recent departure of co-CEO Bret Taylor.
This move aligns with mounting pressure from activist investor Starboard Value, which recently acquired a stake in the company and seeks cost-cutting measures. Salesforce faces significant economic headwinds as its market valuation drops from a late-2021 peak of over $300 billion to roughly $134 billion. The layoffs reflect a broader trend across the tech sector, with industry giants like Meta, Stripe, Amazon, and Tesla also implementing major cost reductions in early 2023.