Salesforce, in the latest round of streamlining efforts within the tech industry, is reportedly reducing its workforce by approximately 700 employees, constituting about 1% of its global staff, according to sources cited by the Wall Street Journal on Friday.
However, the report suggests that this move may be part of a routine adjustment, as Salesforce still has 1,000 job openings across various departments, indicating ongoing recruitment efforts within the company.
This downsizing trend aligns with broader developments in the U.S. tech sector, which has witnessed a series of layoffs post-pandemic, notably involving major players like Amazon and Google.
In response to the report, Salesforce did not provide an official comment as of the time of Reuters’ request.
This news follows recent announcements from other tech companies, including eBay’s decision to cut around 1,000 positions, approximately 9% of its current workforce, and Microsoft’s plan to release 1,900 employees, affecting both Activision Blizzard and Xbox divisions.
It’s worth noting that Salesforce had previously implemented workforce reductions last year, slashing jobs by 10% and closing some offices. This move was driven by the need to rightsize its staff after substantial hiring during the pandemic resulted in an over-expanded workforce.
The previous workforce adjustments positively impacted Salesforce’s earnings, leading to increased revenue in the second and third quarters, prompting an upward revision of its annual profit forecast. Additionally, in September, the company had announced plans to hire over 3,000 people, signaling a strategic shift after the job cuts implemented in January of the same year aimed at enhancing profit margins.