Salesforce has revealed it will cut more than 7,300 jobs and sell off part of its real estate footprint as it continues to cut costs.

The company has confirmed it will cut around 10 percent of its 73,541 staff after Salesforce’s chair and co-CEO, Marc Benioff, admitted the firm grew too fast during the Covid-19 pandemic in 2020.

CNN reported Mr. Benioff writing to staff confirming most of the cuts will take place in the next few weeks.

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The tech sector was boosted by a shift to online services during the pandemic but now has to reshape itself following the lifting of restrictions.

Companies are also facing rising interest rates, fears of a recession, and massive inflation, as well as customers tightening their own purse strings.

Dan Ives, an analyst at Wedbush Securities, wrote in Investor that Salesforce is “clearly is seeing headwinds in the field and thus is trying to quickly adjust to a softening demand environment.”

He added the company “clearly overbuilt out its organization over the past few years along with the rest of the tech sector.”

Benioff told staff they would “receive a minimum of nearly five months of pay, health insurance, career resources, and other benefits to help with their transition.”

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Those outside the United States “will receive a similar level of support,” he confirmed.

He said: “The employees being affected aren’t just colleagues.

“They’re friends. They’re family. Please reach out to them. Offer the compassion and love they and their families deserve and need now more than ever. And most of all, please lean on your leadership, including me, as we work through this difficult time together.

The announcement follows Salesforce cutting 2,500 jobs in November 2022.

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