Salesforce, the enterprise software company, is preparing to lay off up to 2,500 employees in a new round of layoffs, following in the footsteps of other big tech corporations.
Salesforce plans to cut off 2,500 employees or more due to “performance” difficulties, according to Protocol reported.
Several hundred others are expected to be placed on a 30-day probationary period, with the goal of terminating them after a month, according to the report.
Salesforce confirmed the development in a statement to CNBC, saying, “Our sales performance process drives accountability.” Unfortunately, this can lead to some employees leaving the company, and we help them through the transition.
It did, however, state that the layoffs affected “fewer than a thousand” employees.
Earlier this year, the corporation employed 73,541 individuals.
In August, Salesforce stated in a filing that staff had increased by 36% in the previous year “to match the increased demand for services from our clients.”
Salesforce previously laid off approximately 90 contract workers and imposed a hiring freeze until January 2023, as per protocol.
According to the report, “investors are now seeking a higher return from Salesforce, which has historically diverted its revenues toward expansion, including investing billions to purchase companies like Slack and Tableau.”
Starboard, an activist investor, is also said to be putting pressure on Salesforce. In October of this year, Microsoft, one of Salesforce’s main competitors in business software, announced a wave of job cuts.
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