General insurance Salesforce Layoffs 2022

[Adriana Jaycie]

While the numbers are hard to estimate, some LinkedIn users say they no longer work at Salesforce. The tech giant reportedly has more than 73,000 employees and lowered its revenue guidance twice this year. It also shut down a plant. What are some of the reasons for Salesforce's layoffs?

LinkedIn users say they no longer work at Salesforce​

LinkedIn users have said they no longer work for Salesforce, a company that employs more than 73,000 people. These people said they once worked in sales, recruiting, or business development, but are no longer with the company. Earlier this year, Salesforce lowered its revenue guidance. The company has also had to lower its costs.

The tech giant enacts a hiring freeze​

It has been a while since Salesforce has announced any layoffs, but the company recently announced a hiring freeze for the year 2022. The freeze will only affect certain jobs, not all. The company is currently one of the most aggressive recruiters in the Bay Area, investing in workforce development initiatives and expanding its talent pool across its entire ecosystem. As a result, it is unlikely that it will cut as many employees as it did during the August 2020 layoff pandemic.

Sadly, the decision to enact a hiring freeze for 2022 has already taken its toll on the company's stock. The tech giant is already facing a difficult time with rising interest rates, inflation, and a recession. Its stock has dropped 44% since the start of the year.

It cuts 90 jobs​

The world's largest cloud-based software company is cutting 90 jobs by 2022, a dramatic reduction. Despite its CEO's promises that no significant layoffs would take place, Salesforce is taking drastic measures to cut down on costs. The company recently announced it would shut down offices in several countries, including Canada, and move to pay hourly workers instead of laying off employees. In part, this move is a result of the company's long-established Ohana ethos, a philosophy of treating employees like family and caring for one another.

While the company is attempting to avoid major layoffs, it has also halted the hiring of temporary recruiting contractors. This means many departments won't be hiring anyone for the rest of the fiscal year. A number of affected employees have posted on social media, and some have put the number at 90. This hiring freeze was first reported by Protocol.

It closes a plant​

After a solid second quarter, Salesforce cut its business outlook and provided lower guidance for the year. This follows similar themes from other enterprise software firms. As a result, Salesforce's stock price dropped 6.5% in after-hours trading. The company's revenue rose 26% year over year to $7.72 billion in constant currency, a measure that strips out foreign currency fluctuations. In its statement, the company said customers are now taking a more measured approach to business.

It offers severance packages​

Salesforce has announced that it will lay off 1,000 people in its next round of layoffs. The move follows a pre-pandemic reduction in January. Although the COVID-19 pandemic had little to do with the recent layoffs, the company has been experiencing a difficult environment. CEO Marc Benioff did not mention layoffs in his recent earnings call, but he did speak of stakeholder capitalism and future investments in several technology areas.

Salesforce CEO Marc Benioff pocketed a $2.3 million bonus in April, which is a small fraction of his estimated net worth of $6.5 billion. While layoffs are undoubtedly a painful part of any company's transition, the company has made a strategic move to boost morale and reduce costs by hiring fewer people. The company announced its fiscal year 2022 revenue at $26.5 billion, a 25 percent increase from the previous year.