Cloud computing firm Salesforce announced on Wednesday that it was closing numerous offices and laying off roughly 8,000 workers, or nearly 10 per cent of its workforce. As the global economy enters a slump, Salesforce will now join fellow US digital behemoths Twitter, Amazon, and Facebook-owner Meta in implementing layoffs. The California-based company claimed that last year’s revenue decreased due to rife inflation and rising interest rates after experiencing excellent growth during the coronavirus pandemic.
“As our revenue accelerated through the pandemic, we hired too many people…and I take responsibility for that,” Salesforce boss Marc Benioff said in a letter to employees.
The majority of the layoffs, according to the firm, will occur in the upcoming weeks and will cost between $1.4 billion and $2.1 billion.
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Salesforce, a company that focuses on business software and cloud computing, claimed to have 79,000 employees worldwide as of December 2022.
This was a significant increase from the 49,000 employees in January 2020, right before the coronavirus epidemic drove office work online and gave Salesforce a substantial boost.
Following the news, Salesforce’s stock increased by more than three per cent. The stock has dropped by around 44% in the last year.
(With inputs from agencies)
