Salesforce cuts 1,000 staff globally, SG employees impacted

Days after announcing strong second quarter fiscal 2021 results, Salesforce has laid off about 1,000 employees worldwide, forming close to 2% of its workforce. According to Marketing's sources, the number of people and teams impacted in Singapore were not announced.

Meanwhile in a statement to Marketing, Salesforce's spokesperson said it is reallocating resources to position the company for continued growth. This includes continuing to hire and redirecting some employees to fuel its strategic areas, and eliminating some positions that no longer map to Salesforce's business priorities.

"For affected employees, we are helping them find the next step in their careers, whether within our company or a new opportunity," the spokesperson added. Meanwhile, Mark Hawkins, president and CFO, said the company intends to accelerate spend in go to market and product originally planned for next year and pull that into the second half of this year.

In March this year, CEO Marc Benioff pledged on Twitter that it will not conduct any significant layoffs over the next 90 days and that it will continue to play its hourly workers while its offices are closed. He also outlined eight steps to address the COVID-19 crisis and one of them was to have every CEO take a 90-day “No lay off” pledge.

https://twitter.com/Benioff/status/1242893233715163137

https://twitter.com/Benioff/status/1242608667771330560

On Tuesday, Salesforce reported a US$5.15 billion in second quarter revenue, marking a 29% year-on-year (YoY) increase. Revenue from Asia Pacific for the quarter formed 9% of global revenue at US$485 million. Subscription and support revenues for the quarter were US$4.84 billion, an increase of 29% YoY also. Professional services and other revenues for the quarter were US$0.31 billion, a 23% YoY increase. Meanwhile, operating expenses for marketing and sales amounted to US$2.28 billion.

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