Enterprise software major Salesforce has laid off about 700 employees globally, representing nearly 1 percent of its workforce, as per a Wall Street Journal report on Friday.
The job cuts spanned various business units and departments after a review by the company leadership. However, Salesforce continues to have over 1,000 open positions currently, indicating routine workforce restructuring.
The move aligns with recent workforce trimming exercises by other tech majors like Amazon, Microsoft, Google, and eBay amid mounting recessionary pressures. Most firms had overhired during the pandemic to meet surging demand.
Notably, Salesforce had also cut jobs by 10 percent last year after discovering inefficiencies from rapid expansion. The streamlining helped shore up margins and boost revenue growth in subsequent quarters this year.
The company even projected stronger full-year profit guidance on the back of higher efficiency. It has additionally announced plans to add more than 3,000 positions globally since the last retrenchment exercise.
Industry watchers believe the latest job cuts are part of similar workforce optimization attempts to drive profitability as Salesforce heads towards a potential IPO in the future.
Meanwhile, Indian food delivery firm Swiggy also preparing to lay off nearly 350-400 employees across verticals to turn leaner before its own initial public offering. call center staff, corporate employees, and technology teams are expected to be impacted by the right-sizing.
The move comes as funding winter prolongs amid broader economic slowdown worries. Startups looking to list on public markets are cutting costs and jobs to reassure investors.
