IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Salesforce to cut 1,000 jobs despite record earnings

The cloud giant will give employees 60 days to find alternative roles within the company

Salesforce is cutting around 1,000 jobs despite the company's shares reaching all-time record high following a strong second-quarter earnings report. 

Employees affected by the cuts will be given 60 days to find a new role within the company, according to CNBC sources, which could mean the firm lays off significantly less than 1,000 staff. 

Salesforce is reportedly preparing to list 300 new positions next week as it shifts its business model due to the impact of COVID-19. In March, as the pandemic shut down large parts of the economy, CEO Marc Benioff pledged not to lay off employees for 90 days. That period came to an end sometime in June. 

"We're reallocating resources to position the company for continued growth," a Salesforce spokesperson said. "This includes continuing to hire and redirecting some employees to fuel our strategic areas, and eliminating some positions that no longer map to our business priorities."

Employees that don't manage to land new positions will be offered severance and six months of pay benefits, the company said.

The cuts come just a day after the cloud giant reported a quarterly profit of $2.63 billion on revenue of $5.15 billion. Its revenue has grown 29% compared to the previous year and the firm expects total revenue of $20.7 billion in its current fiscal year, ending 31 Jan.

Shares in the company have also never been higher, with stock surpassing a 19% gain recorded in November 2008.

The impact of the coronavirus pandemic and the subsequent recession has forced a number of companies into mass redundancies and strategic shifts, such as permanent remote working or a greater focus on digital operations. Salesforce's financial officer Mark Hawkins said the company was making "strategic shifts" that reflected how and where people now work as a result of the pandemic. 

"This means 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-emphasised," he said.

Featured Resources

2023 Strategic roadmap for data security platform convergence

Capitalise on your data and share it securely using consolidated platforms

Free Download

The 3D trends report

Presenting one of the most exciting frontiers in visual culture

Free Download

The Total Economic Impact™ of IBM Cloud Pak® for Watson AIOps with Instana

Cost savings and business benefits

Free Download

Leverage automated APM to accelerate CI/CD and boost application performance

Constant change to meet fast-evolving application functionality

Free Download

Recommended

Amazon, Salesforce to cut 26,000 jobs as tech layoff spree continues
Business strategy

Amazon, Salesforce to cut 26,000 jobs as tech layoff spree continues

5 Jan 2023
Another Salesforce leader departs, will replace outbound Slack CEO
Careers & training

Another Salesforce leader departs, will replace outbound Slack CEO

6 Dec 2022
Salesforce co-CEO Bret Taylor resigns with cryptic parting message
Business operations

Salesforce co-CEO Bret Taylor resigns with cryptic parting message

1 Dec 2022
The state of Salesforce 2022-2023
Whitepaper

The state of Salesforce 2022-2023

22 Nov 2022

Most Popular

What's powering Britain’s fibre broadband boom?
Network & Internet

What's powering Britain’s fibre broadband boom?

3 Feb 2023
Dutch hacker steals data from virtually entire population of Austria
data breaches

Dutch hacker steals data from virtually entire population of Austria

26 Jan 2023
Windows 10 users locked out of devices by unskippable Microsoft 365 advert
bugs

Windows 10 users locked out of devices by unskippable Microsoft 365 advert

3 Feb 2023