Salesforce’s Marc Benioff hints at more possible layoffs

Marc Benioff, Co-Chief Executive Officer of Salesforce.com Inc., during panel sessions on the second day of the World Economic Forum in Davos, Switzerland, May 24, 2022.

Jason Alden | Bloomberg | Getty Images

Marc Benioff, salesforce The co-founder and soon-to-be sole CEO hinted at an all-hands meeting on Thursday that more downsizing could be coming, according to people with knowledge of the matter.

The virtual meeting came a day after Salesforce announced it was cutting 10% of jobs, amounting to more than 7,000. hours later, Amazon Said it would reduce the workforce by 18,000. Tech companies are downsizing their workforce for the first time in years as they reckon with slowing growth, rising interest rates and a possible recession.

Benioff expressed concern about productivity in some parts of the sales organization. About half of Salesforce account executives bring in more than 95% of deals, according to two people who participated in the video, they told employees. Another person said the meeting was scheduled for an hour but went on for more than two hours.

One of the attendees told CNBC that Benioff said the lack of productivity was largely from the new account executives.

Fortune reported earlier on the meeting.

During the pandemic and in the years leading up to it, Salesforce expanded rapidly as cloud adoption grew. The company fueled its growth through major acquisitions such as Slack and Tableau.

Now Salesforce is retreating because revenue growth is slowing and because it faces an activist investor concern about operating leverage. In November, co-CEO Brett Taylor, who had been seen as Benioff’s successor, announced a surprise departure after a year of sharing the top job. He is expected to leave at the end of January.

Last month, Benioff posted a languid message to all employees asking for ideas on how to make new hires more productive. During Thursday’s meeting, Benioff expressed dismay at the media reports that surfaced about his comments.

According to one of the attendees, Benioff said, “Trust is one of our core values.”

The person said Benioff took a long time to respond about the future of Salesforce.

Salesforce did not immediately respond to a request for comment.

watch: Jim Cramer says more tech layoffs are coming after Salesforce cut 10% of its workforce

Jim Cramer says more tech layoffs are coming after Salesforce cut 10% of its workforce

Source link

Leave a Comment