Salesforce is laying off about employees across the company, as part of a plan to reallocate resources across the company amid the economic downturn. The layoffs affect about 2% of its employee base around the world, or about 1,000 people, according to a source familiar with the situation.
The layoffs come on the heels of its second-quarter earnings results, where Salesforce said it beat Wall Street's revenue estimates for the quarter, and raised full year revenue guidance. On March 25, CEO Marc Benioff pledged that Salesforce would not do any significant layoffs over the next 90 days, calling on other CEOs to do the same. However, that 90-day commitment expired in June, and Benioff did not announce a new, similar pledge.
On the company's earnings call on Tuesday, CFO Mark Hawkins hinted at changes internally, and said the company was "redirecting some of our resources to fuel growth, and areas that are no longer as aligned with the business priority will be now de-emphasized."
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If SFDC sees a reduction in demand, we are definitely in trouble.
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