Salesforce CEO Marc Benioff has set out to further streamline operations.
Since April 3, Salesforce has embarked on a massive organizational flattening by eliminating several management levels in response to increased efficiency pressure from activist investors.
The move, which began Thursday, will see some managers switch to ICs (individual contributors), according to two people familiar with the matter.
One of its goals is to reduce the overall “control scope” and “manager layers” of Salesforce by giving managers a certain number of direct reports. This is to reduce the number of layers of management below the CEO, said one of the people, who spoke on condition of anonymity.
Salesforce did not respond to Insider’s request for comment prior to Wednesday’s announcement, but a spokesperson for the company responded after the report:
“There may have been minor and minor adjustments in some groups, but this is not a company-wide effort. not”
Activist investors like Elliott Management have been in frequent contact with Salesforce in recent months. The company’s draft business plan, reviewed by Insider, calls for a non-GAAP operating margin of 30% or more by capping headcount growth, reducing general and administrative expenses, sales and marketing expenses, and reducing real estate. I would like to extend it to
On January 4, Salesforce announced plans to lay off 10% of its workforce as part of a broader restructuring plan aimed at cutting costs. The company had previously cut jobs.
This move may pay off. Elliott Management, citing a joint statement with Salesforce on March 27, said, “New Days, a multi-year revenue growth framework, strong performance in fiscal 2023, organizational transformation in fiscal 2024, board of directors and management. It said it would not independently nominate a director to challenge the existing board, citing the progress the company has made due to “team action, and a clear focus on value creation.”
The Information earlier announced plans for a reorganization among CEO Marc Benioff and his management team to consolidate managerial layers and increase the number of subordinates assigned to each managerial position. It reported that discussions were ongoing and that some positions could be eliminated.
Source: BusinessInsider
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