As tech companies struggle on Wall Street and beyond, Salesforce has quietly laid off hundreds of employees, but fewer than 1,000, according to insiders. This comes at the same time as others, such as Amazon, Meta, Microsoft, and Elon Musk’s newly-acquired Twitter, have all done the same to some degree, with the latter attracting the most attention within and outside Silicon Valley.
In October 2022, hedge fund Starboard Value announced it had purchased an undetermined, yet significant, stake in Salesforce, indicating potential plans for cutting costs.
Since 2022, Salesforce has reportedly increased its total workforce to meet higher customer demand, but lower-than-expected guidance in August 2022 sent the company's stock down by 3%. Marc Benioff, co-founder and co-CEO, expects longer sales cycles and increased scrutiny over corporate purchases, which may also be driving his company’s belt-tightening efforts. Amy Weaver, the company’s head of finance, also reported a decrease in demand from small- and medium-sized businesses, especially in the communications, consumer goods, media, and retail industries.
For some of the employees Salesforce is keeping on, the company has begun requiring a return to physical offices, a reversal of Benioff’s previous statements decrying such mandates.