Salesforce, a major enterprise software company, is reportedly cutting around 700 jobs, which is approximately 1 per cent of its workforce of about 70,000 people. This comes a year after the company reduced its staff by 10 per cent, or roughly 8,000 employees, to address investor pressure to cut costs.
Previous Layoffs
In January 2023, Salesforce laid off 10 per cent of its workforce, affecting around 7,000 employees, due to global economic conditions. The layoff announcement was made during a two-hour, all-hands meeting over a call.
CEO's Response
In February, CEO Marc Benioff in an interview with The New York Times, said the call wasn't the best idea. He said it was “hard to have a call like that” and “we paid a price".
Wider Industry Trends
Salesforce now joins other tech companies like TikTok, Google, YouTube, Amazon, Unity, and Discord in making job cuts in 2024. Google, for instance, has laid off nearly 1,000 employees across various departments, including hardware and engineering teams. YouTube is also reportedly cutting around 100 jobs in its creator management and operations teams.
Ongoing Job Losses in Tech
Within the first two weeks of the new year, over 7,500 employees from 46 IT and tech companies, including startups, have faced layoffs. This trend is linked to the impact of generative AI (GenAI), posing a threat to millions of jobs in the tech industry.
Global Impact
Tech companies globally laid off more than 425,000 employees in 2022 and 2023, with over 36,000 employees losing their jobs in India during the same period.
Inputs from IANS
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