After a widespread reduction in labor forces for many technology companies, customer relationship management giant Salesforce may be poised to make more layoffs, according to Bloomberg. This would come in addition to a 10% staff reduction in January 2023, where roughly 7,000 employees were laid off and certain offices closed. New layoffs were hinted at by chief operating officer Brian Millham, who told Bloomberg that the company was prepared to restructure to drive efficiency, if necessary.
The COO’s comments insinuate that Salesforce will further reduce its workforce to cut payroll and related operating costs, but the company is awaiting advice from management consultancy Bain and Company regarding its best path forward.
Salesforce could be under a degree of pressure from five activist investors—Elliott Management, Starboard Value, ValueAct, Inclusive Capital, and Third Point—that are emphasizing cost cutting. If the company does lay off more employees, it would join Amazon and Meta, which both announced new layoffs across numerous verticals. Both big tech companies previously made significant staff cuts, leading a widespread industry trend. Since the beginning of this year, at least 150,000 tech employees have been laid off.