Home » US business news • US Employment News » Salesforce terminates 2,500 jobs as demand drops
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Salesforce has slashed thousands of employees from sales teams in the latest round of tech layoffs.
The San Francisco firm is trying to boost profitability while battling a slowdown in demand for its software products amid an economic downturn.
Sources said almost 2,500 employees lost their jobs this week.
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A company spokesperson said: “Our sales performance process drives accountability.
“Unfortunately, that can lead to some leaving the business, and we support them through their transition.”
Last month, Salesforce announced a hiring freeze till January 2023 and minor layoffs which hit around 90 people.
The enterprise software maker employed 78,634 people as of July 31.
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It is the leading private-sector employer in San Francisco.
It has almost tripled its workforce in the last five years, mainly due to dozens of takeovers.
After years of focusing on sales growth, the business has shifted its focus to a new profit margin target of 25 percent by 2026.
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In recent weeks, tech giants like Meta and Amazon have announced layoffs or hiring freeze.
These moves come in the face of declining consumer spending, higher inflation, and a strong dollar, which hampers global sales.
Protocol reported earlier Salesforce is aiming to lay off 2,000 employees "or more" before Thanksgiving.
The company declined to respond on any future layoffs.
Source: Bloomberg
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