Sina Technology News Beijing time on the evening of January 4th, it is reported that Salesforce, an American commercial cloud computing software developer, announced a restructuring plan today, including layoffs of about 10%, aiming to reduce operating costs, improve operating margins, and drive profits. increase.
The plan, Salesforce said, includes reducing the company’s current workforce by about 10% and exiting real estate (leasing out) in some markets to reduce office space.
Salesforce expects charges related to this restructuring plan to be approximately $1.4 billion to $2.1 billion, of which approximately $800 million to $1 billion is expected to be incurred in the fourth quarter of fiscal 2023.
These charges primarily include charges of $1 billion to $1.4 billion related to employee transitions, severance pay, employee benefits and stock awards, and $450 million to $650 million related to office space reductions.
Of the total Salesforce expects to incur in connection with the program, approximately $1.2 billion to $1.7 billion will be future cash disbursements.
Salesforce expects that actions related to the workforce restructuring under the program are expected to be substantially complete by the end of the company’s 2024 fiscal year, while actions related to the real estate restructuring are expected to be fully completed by fiscal 2026.
“The environment remains challenging and our customers are taking a more cautious approach to making purchasing decisions,” Salesforce co-CEO Marc Benioff said in a letter to employees.
Benioff also said: “During the epidemic, our revenue continued to grow, causing us to hire too many employees. But now, we are facing an economic downturn, and I want to take responsibility for it.
According to data from Layoff.fyi, a website that tracks unemployment in the technology industry, American technology giants including Meta, Microsoft, Twitter and Snap have laid off more than 150,000 people in 2022.
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