Salesforce CEO Marc Benioff.
Salesforce recently made additional layoffs as part of a 10% workforce reduction plan it announced in January, Insider found. Employees have taken to an internal Slack channel to voice concerns about the company’s handling of the layoffs.
The message, seen by Insider, read:
“You have to search Slack for each of your close colleagues to see who survived and who didn’t. It’s like checking on a missing person’s bulletin board after a catastrophe.”
“I’ll log in in the morning and see if the password still works. It’s Salesforce roulette.”
Salesforce typically notifies employees who are being laid off in an email with the subject line “Important information about your role.”
According to multiple people familiar with the company’s layoffs, the company’s sales team, which handles top-level support services called “Signature,” was hit hard by the layoffs, as well as members of the CRM analytics team. said to have been affected.
The Salesforce.org team, which sells services to nonprofits and educational institutions, was also among the layoffs, according to a LinkedIn post by an affected employee.
“There must be a more bloody way.”
A comment viewed by Insider said, “Six co-workers were fired this morning,” accompanied by hundreds of supportive reactions.
“One was on vacation with his family and a colleague called and informed him of this. I understand there are security concerns, but there has to be a more bloody and better way to deal with layoffs.”
A continuing concern is that there are many things employees don’t know about, such as how many more layoffs the company plans to make before reaching its planned 10% cut.
One employee wrote:
“I know it’s not easy, but four months of ulcer-inducing anxiety, top-down communication, and seeming lack of emotion is terrible.”
“The ELT[the company’s executive leadership team]is silent and doesn’t communicate how these changes will affect those who are still here. I don’t understand.”
Salesforce CEO Marc Benioff personally responded to several messages, writing:
“I am very sorry to learn how much these changes are affecting you all. If you have made any mistakes, please send me a direct mail immediately. If I can be of any help to those who have received it, please send me a direct mail and I know how difficult this layoff is for all of us.”
Activist investors flock
Meanwhile, the cost-cutting measures helped Salesforce avoid a proxy fight for control of the board.
On March 27, activist investor Elliott Management issued a joint statement with Salesforce, stating, Introduced progress in terms of organizational reforms for the fiscal year, actions by the board of directors and management, and a clear focus on value creation. It said it would not independently nominate directors to challenge the existing board.
On January 4th, Salesforce announced plans to lay off 10% of its workforce as part of a broader restructuring plan aimed at cutting costs. Based on Salesforce’s recently announced headcount of 79,390 employees, that would mean roughly 8,000 jobs could be laid off. A Salesforce spokeswoman said the recent layoffs were part of plans announced in January.
Activist investors like Elliott have flocked to Salesforce. According to a draft of Elliott’s business plan seen by Insider, Salesforce is working to exceed 30% non-GAAP operating margin by capping headcount growth, cutting SG&A expenses and reducing real estate. It responds by accelerating it.
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(Edited by Ayuko Tokiwa)
Source: BusinessInsider
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