More job cuts are expected to come from the San Francisco-based tech giant
Salesforce is reducing the size of its staff in a move that affects thousands of workers.
The San Francisco-based company let go of just less than 1,000 people on Monday, reported CNBC, citing a person familiar with the move.
Overall, the technology giant plans to lay off as many as 2,5000 workers, reported Protocol. Of these workers, about 2,000 will be fired for "performance" issues, according to the report, citing both an industry source and a former employee.
Several hundred more, likely those workers who fall under a protected group like individuals with disabilities, will be placed on a 30-day review, with the intention of letting them go once that concludes, one source told Protocol. It’s likely that people will be let go before the Thanksgiving holiday, according to the report.
Top executives at some of the Salesforce’s clients have been weighing in on purchases and this has been resulting in longer deal cycles, reported CNBC. “Our sales performance process drives accountability. Unfortunately, that can lead to some leaving the business, and we support them through their transition,” a Salesforce spokesperson told CNBC in a statement.
Salesforce has over 78,000 employees globally, the company said in a blog post in February. That same month, the company announced it is looking to make executives more accountable for the company’s environmental, social and governance (ESG) initiatives. To accelerate these programs, the San Francisco-based company said that a portion of executive variable pay for those in the executive vice president-level and above will be determined by ESG measures starting this year.
“It's a shame to see Salesforce effected by these broader tech layoffs, which include Meta, Twitter, Snap, Microsoft & IBM,” said Ben McCarthy, founder of Salesforce Ben.
Teletherapy and medication management company Cerebral has previously announced it is laying off about 20% of its workforce to match patient demand and lower growth targets. Also, Seagate Technology announced it plans to cut 8% of its global workforce, or about 3,000 employees, citing declining demand and economic uncertainty.
Beyond Meat, Warner Bros. Television Group, DocuSign have also announced staff reductions. Meanwhile, Meta, meanwhile, is giving many of its 83,553 employees a month to apply for different positions within the company, the Wall Street Journal also reported. Similarly, Google has informed about 50 employees (roughly half of those employed at the firm’s startup incubator Area 120) they need to find a new internal role within three months if they want to remain employed.
Also, in August, the number of job openings decreased to 10.1 million from 11.2 million in July, according to the latest Job Openings and Labor Turnover Survey (JOLTS).