Salesforce said it would lay off about 10% of its employees and close some offices, becoming the latest tech firm to undertake cost cuts amid an economic slowdown $CRM
have slashed thousands of jobs in the past year, in preparation for a recession, expected as a result of aggressive interest rate hikes by global central banks to curb inflation.
Businesses that relied on cloud services during the pandemic are now trying to reduce expenses and are delaying new projects, hurting companies such as Salesforce and Microsoft Corp"The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions," Salesforce co-Chief Executive Officer Marc Benioff said in a"As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we're...
Salesforce shares were up 3% on Wednesday. They lost roughly half their value in 2022 as Salesforce posted four consecutive quarters of slowing growth."It is certainly not alone as the sector has grappled with a demand environment that has meaningfully softened over the last 12 months," William Blair analyst Arjun Bhatia said.
The move puts Salesforce in a good position to meet its 2026 target of 25% operating margin but the macro backdrop could pose risk to its $50 billion revenue target, Bhatia said. "There is high likelihood of right-sizing by other software firms," RBC Capital Markets analyst Rishi Jaluria said.Reporting by Nivedita Balu in Bengaluru; Additional reporting by Tiyashi Datta, Akash Sriram and Yuvraj Malik; Editing by Vinay Dwivedi, Shounak Dasgupta and Shinjini Ganguli
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