Salesforce cuts around 1,000 roles globally despite record quarter

Salesforce has laid off around 1,000 staff worldwide in a restructure aimed at delivering "continued growth", just days after it reported a record quarter.

The software giant began notifying affected employees that their roles were being eliminated on Wednesday, a day after reporting its second-quarter results.

It posted a record US$5.15 billion in revenue for the quarter, up 29% year-on-year, with net income of $2.63 billion. As a result, it lifted its full-year earnings outlook from $20 billion in revenue to between $20.7 and $20.8 billion. Chief executive Marc Benioff said in the earnings release it was "humbling" to record one of the best quarters in Salesforce’s history against the backdrop of multiple crises around the world.

It was bittersweet for some, as a reorganisation of resources quickly followed. The cuts cover more than a dozen locations around the world, including in Asia-Pacific. The around 1,000 affected employees were told they have 60 days to find a new role in the company. The cuts equate to about 1.9% of the company’s workforce of 54,000. 

Salesforce chief financial officer Mark Hawkins had alluded to an upcoming restructure in the earnings call. "We’ll be redirecting some of our resources to fuel growth, and areas that are no longer as aligned with the business priority will be de-emphasized," he told analysts.

It is not unusual for technology giants like Salesforce to clear up to 10% of their workforce annually. However, this comes at a difficult time for employees, as Covid-19 has affected the job market and reduced salaries. Aware of this, Benioff in March had pledged on Twitter that the company would avoid any significant layoffs for 90 days during the pandemic even as the company shifted to remote working. 

Campaign reached out to Salesforce for a statement but did not hear back by time of publication.

(This article first appeared on CampaignAsia.com)