Big tech layoffs show no signs of slowing down. After Twitter, Microsoft and Meta, Salesforce has now laid off hundreds of employees, as the industry grapples with the economic slowdown.
Protocol previously reported that Salesforce was preparing for a major round of layoffs that could affect up to 2,500 employees. However, the company told media publications that “less than a thousand” employees have been affected by the job cuts.
The enterprise software maker confirmed it had laid off employees earlier this week.
“Our sales performance process advances accountability. Unfortunately, this can lead to some businesses leaving, and we support them through their transition,” the company said in a statement.
Earlier this year, the company had 73,541 people on its payroll.
In August, Salesforce said in a filing that it increased its workforce by 36 percent last year “to meet the high demand for services from our customers.”
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As per protocol, Salesforce had previously laid off around 90 contractual employees and implemented a hiring freeze until January 2023.
“Investors are increasingly demanding higher returns from Salesforce, which has always driven its profits toward growth, including spending billions to acquire companies like Slack and Tableau,” the report noted.
Salesforce is reportedly also facing pressure from active investor Starboard.
Microsoft, one of Salesforce’s top competitors in business software, announced a round of job cuts in October of this year.
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