Enterprise software company Salesforce has been forced to sack around 10 per cent of its workforce and cut working space – the latest in a long line of tech staff cutbacks.
This follows the laying off of 1,000 staffers in November. According to The Australian, local staff will also lose their jobs.
Salesforce chief executive Marc Benioff said “the environment remains challenging and our customers are taking a more measured approach to their purchasing decisions” in a letter to staff.
“I’ve been thinking a lot about how we came to this moment,” he wrote.
“As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that.”
Sacked employees will receive “a minimum of nearly five months of pay, health insurance, career resources, and other benefits to help with their transition”.
While this refers to American employees, the letter assured that “those outside the U.S. will receive a similar level of support, and our local processes will align with employment laws in each country.”
The firings are part of a A$3 billion “restructure plan” outlined by the company in a filing to the United States Securities and Exchange Commission.
“These charges consist primarily of US$1.0 billion to US$1.4 billion in charges related to employee transition, severance payments, employee benefits, and share-based compensation; and US$450 million to US$650 million in exit charges associated with the office space reductions.
“Of the aggregate amount of charges that the Company estimates it will incur in connection with the Plan, the Company expects that approximately US$1.2 billion to US$1.7 billion will be in future cash expenditures.”
