Salesforce cut hundreds of employees on Monday

Marc Benioff, Co-CEO of Salesforce.com Inc. , speaks during a keynote speech at the 2022 Dreamforce Conference in San Francisco on September 20, 2022. Tens of thousands of techies will be entertained by national park-themed decorations in downtown San Francisco this week as Salesforce Inc’s annual Dreamforce Conference returns in full after two years of… epidemic.

Marlina Sloss | Bloomberg | Getty Images

sales force It confirmed Tuesday that it has laid off some employees this week after the enterprise software maker saw demand slump in some countries and industries.

protocol It reported earlier about the cuts, saying they could affect up to 2,500 employees. One person familiar with the matter said Salesforce left fewer than 1,000 people on Monday. At the end of January, it employed 73,541 people. In August, Salesforce said in a request that headcount increased 36% in the past year “to meet the growing demand for services from our customers.”

“Our sales performance process leads to accountability,” a Salesforce spokesperson told CNBC in a statement. “Unfortunately, this can result in some leaving the business, and we support them during their transition.”

many technology companies, Salesforce included, announced plans to add staff at a slower rate than before this year to cope with difficult business conditions with rising prices and interest rates. Some have also gone further and removed some current employees, as experts debate the timing of a possible recession.

In August Salesforce export Full-year earnings and guidance missed expectations, sending the stock down 3% the next day. Salesforce chief financial officer Amy Weaver told analysts that demand has slowed among small and medium-sized businesses, particularly in North America and Europe, and in telecoms, consumer goods, media and retail. Marc Benioff, co-founder and co-CEO of Salesforce, said he expects long sales cycles to continue and greater scrutiny of corporate procurement continues.

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One of the biggest competitors to Salesforce in business software, Microsoftannounced round of job cuts in October.

Watch: Cloud stocks face double losses

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