Cloud-based CRM software provider Salesforce has become the latest technology company to announce massive layoffs, cutting at least hundreds of jobs from its 73,000-person workforce.
“Our sales performance process advances accountability. Unfortunately, this can lead to some businesses leaving, and we support them through their transition,” Salesforce said in a statement confirming the layoffs.
Salesforce has experienced a relatively successful year financially, with the company’s second-quarter revenue up 22% year over year, driven by rapid adoption of its cloud-based CRM and other sales management tools. The company has been facing cost-cutting pressure since last month, when activist hedge fund Starboard Value took a stake in the company and immediately called on Salesforce to increase its margins, although Starboard apparently refused to cut its workforce. Didn’t call.
Salesforce isn’t the only tech company to announce job cuts this month. Last week, Twitter’s new owner, Elon Musk, fired nearly half of the social media platform’s employees in addition to the company’s senior leadership team.
Meta has also announced that it is slashing its workforce by 13%, which has led to the loss of 11,000 employees. In a statement, Meta CEO Mark Zuckerberg said the company is taking several additional steps to become a “leaner and more efficient company” by cutting discretionary spending and extending our hiring freeze through Q1.