- Salesforce has cut 300 jobs as part of its efforts to manage costs and streamline operations.
- Similar layoffs are taking place across the technology industry, with companies such as Intuit and Microsoft also reducing their workforces.
OUR TAKE
Software giant Salesforce recently cut around 300 jobs as part of its ongoing strategy to streamline operations and manage costs more effectively. The move reflects a wider trend in the technology sector, where companies are seeking to reassess their staffing needs after years of rapid expansion. Other technology companies, including Intuit, UiPath and Open Text Corporation, have also announced significant job cuts. It is a trend that highlights the industry’s shift towards optimising costs and improving operational efficiency amid market volatility.
—Heidi Luo, BTW reporter
What happened
Software giant Salesforce has cut around 300 jobs this month as part of its ongoing efforts to streamline operations and manage costs more effectively. The move is part of a wider trend in the technology sector, where companies are scaling back after periods of rapid expansion and hiring.
These layoffs are part of a series of workforce reductions that have taken place over the course of the year, including a large reduction of around 700 positions earlier in the year and nearly 10% of the total workforce at the start of 2023.
These job cuts come at a time when other tech giants such as Intuit, UiPath and Open Text Corporation have also announced significant layoffs. Intuit, for example, plans to cut 1,800 jobs, but said it would hire a similar number of new employees, with the focus on high-performing areas. Meanwhile, it was reported last month that Microsoft had also cut staff in its Azure cloud division.
Also read: Salesforce plans to launch its first AI centre in London
Also read: Nvidia and Salesforce back AI startup Cohere with $450M
Why it’s important
The recent layoffs at Salesforce, along with similar cuts at other technology giants, reflect a broader trend of cost management in the technology industry. In particular, Salesforce continues to hire for strategic roles that support potential revenue drivers, such as its Data Cloud product, even as it reduces other parts of its workforce.
These job cuts not only help control operating costs, but also realign the company’s workforce with its long-term strategic goals. The layoffs also have an immediate financial impact, which affects share prices and investor perceptions. For example, Salesforce’s stock took a hit immediately after the layoff announcement.
“Are we getting the most from everybody in the business — if we’re not, we’re going to have to make reshaping decisions,” said chief operating officer Brian Millham during a June investor conference.
