Salesforce said today (Jan. 4) it will lay off about 10 percent of its staff, affecting about 7,800 employees, and close some offices in its latest effort to slash costs amid slowing software business and an economic downturn. Salesforce shares jumped 3.5 percent today on the news after losing 44 percent in 2022.
The announcement came two months after Salesforce said it needed to cut hundreds of jobs as a result of slowing revenue growth from its small- to medium-sized clients. Salesforce provides sales and management software to businesses globally.
“The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions,” Salesforce CEO Marc Benioff said in a letter to employees today, first reported by the Wall Street Journal.
Benioff said Salesforce hired too many people during the pandemic as its revenue accelerated but now faces a downturn. “I take responsibility for that,” he said in today’s letter.
Salesforce said affected employees in the U.S. will receive a minimum of five months pay, health insurance and other benefits. The layoff is expected to lead to a charge of up to $2.1 billion.