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The tech giant Salesforce is planning 500 layoffs by 2022. While the company has not officially announced a cut in its workforce, many speculate that it is due to the recession and the difficulty in finding qualified employees. The company has been aggressive in recruiting in the Bay Area and has invested in workforce development initiatives. The company sells a suite of enterprise applications. While layoffs are rare for tech companies, the company's announcement is a sign of the tough times for the tech industry.
Job cuts at tech companies
According to reports, tech companies have been slowing down on hiring and cutting travel expenses. The biggest names in tech are preparing for layoffs. Robinhood Markets, for example, recently laid off 9% of its workforce, resulting in a net loss of $2 billion since its public debut last July. Other companies have made major cuts as well. For example, Spotify Technology SA announced a 25 percent reduction in its workforce in its latest round of layoffs.
While it's too early to tell whether or not Salesforce will experience layoffs in 2022, recent layoffs by tech companies show that many are being forced to cut their workforce. Despite aggressive recruiting in the Bay Area and massive workforce development initiatives, companies like Salesforce are not immune to layoffs. The company has been trying to keep costs down while boosting profits, but the recent layoffs may be a symptom of recessionary issues for the tech industry.
The S&P 500 closed last week with its worst half-year loss since 1970. Earlier this month, Snap Inc.'s stock slid 30% after its CEO announced the company was taking a pause on hiring. Snap is also expected to miss its quarterly revenue targets. Another popular company in tech, Coinbase, recently rescinded job offers to new hires.
According to Crunchbase News, a total of 42,000 U.S. tech companies are expected to face mass layoffs in 2022. While many companies have cut back on hiring, others have stopped hiring altogether. In February, Netflix announced that it was eliminating a number of positions and the COVID-19 pandemic has been a contributing factor. Startups also face difficulty in raising new funding in the current climate.
While it's too early to tell whether or not Salesforce will experience layoffs in 2022, recent layoffs by tech companies show that many are being forced to cut their workforce. Despite aggressive recruiting in the Bay Area and massive workforce development initiatives, companies like Salesforce are not immune to layoffs. The company has been trying to keep costs down while boosting profits, but the recent layoffs may be a symptom of recessionary issues for the tech industry.
The S&P 500 closed last week with its worst half-year loss since 1970. Earlier this month, Snap Inc.'s stock slid 30% after its CEO announced the company was taking a pause on hiring. Snap is also expected to miss its quarterly revenue targets. Another popular company in tech, Coinbase, recently rescinded job offers to new hires.
According to Crunchbase News, a total of 42,000 U.S. tech companies are expected to face mass layoffs in 2022. While many companies have cut back on hiring, others have stopped hiring altogether. In February, Netflix announced that it was eliminating a number of positions and the COVID-19 pandemic has been a contributing factor. Startups also face difficulty in raising new funding in the current climate.
Ways companies are re-evaluating their hiring strategies
After hearing about the potential layoffs at Salesforce, some companies have begun re-evaluating their hiring strategies. While they have not completely halted their hiring, they are limiting new hires in some departments and cutting travel expenses. The economy is slowing and companies need to make adjustments.
To reduce costs, companies often re-evaluate their business plan, reallocate expenditures, and streamline their organizational structure. To make sure their decisions are in line with their business objectives, they will evaluate their teams based on objective criteria and determine which roles are redundant or unnecessary. The objective criteria used will include a company's revenue growth goals, its profitability, and the structure needed to implement those goals. In most cases, companies will seek to cut non-revenue-generating positions while keeping revenue-generating ones.
Salesforce has not officially announced any layoffs in 2022, but it has slowed hiring and cut other costs to avoid the layoffs. The company has been aggressively recruiting in the Bay Area and has invested heavily in its workforce development initiatives. Although layoffs at Salesforce are unusual, these cuts may be a symptom of a more challenging job market for tech workers.
As a result, companies are focusing on retaining the best salespeople and reducing their employee headcount. This trend has been observed by HSMAI, a trade association for the salesforce. It may be necessary to be leaner in these tough economic times, but great talent doesn't disappear. By utilizing freelancers, fractional talent, and expert industry professionals, companies can run a leaner employee headcount.
To reduce costs, companies often re-evaluate their business plan, reallocate expenditures, and streamline their organizational structure. To make sure their decisions are in line with their business objectives, they will evaluate their teams based on objective criteria and determine which roles are redundant or unnecessary. The objective criteria used will include a company's revenue growth goals, its profitability, and the structure needed to implement those goals. In most cases, companies will seek to cut non-revenue-generating positions while keeping revenue-generating ones.
Salesforce has not officially announced any layoffs in 2022, but it has slowed hiring and cut other costs to avoid the layoffs. The company has been aggressively recruiting in the Bay Area and has invested heavily in its workforce development initiatives. Although layoffs at Salesforce are unusual, these cuts may be a symptom of a more challenging job market for tech workers.
As a result, companies are focusing on retaining the best salespeople and reducing their employee headcount. This trend has been observed by HSMAI, a trade association for the salesforce. It may be necessary to be leaner in these tough economic times, but great talent doesn't disappear. By utilizing freelancers, fractional talent, and expert industry professionals, companies can run a leaner employee headcount.
Impact of dot-com bust on hiring
When the dot-com bubble burst, companies like PayPal and Salesforce were not only hurt financially, but many of them also had to lay off employees. But some companies have been spared. These include Square, Uber, and Whatsapp. And even though these companies started before the bubble burst, they survived the crash.
While many of these companies have announced layoffs and hiring freezes, others, such as Microsoft, Snap, and Coinbase, have not, yet. And they still have lofty hiring goals. But the tech industry is in an especially bad state. The recent shortage of tech workers has given workers leverage over companies.
The dot-com bubble lasted for about two years and reached its peak in March 2000. During this period, many companies created new companies, hoping to increase their share of the market. As a result, the stock market crashed. And with it, trillions of dollars of invested capital.
While many of these companies have announced layoffs and hiring freezes, others, such as Microsoft, Snap, and Coinbase, have not, yet. And they still have lofty hiring goals. But the tech industry is in an especially bad state. The recent shortage of tech workers has given workers leverage over companies.
The dot-com bubble lasted for about two years and reached its peak in March 2000. During this period, many companies created new companies, hoping to increase their share of the market. As a result, the stock market crashed. And with it, trillions of dollars of invested capital.
