Salesforce cut hundreds of employees Monday
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Re: Salesforce cut hundreds of employees Monday
#2Every company wants to cut spending on people, services, and facilities, because revenues are slowing down, costs are rising, and there's more uncertainty about the near term future.
The people who lose their jobs, in turn, are forced to cut their spending, contributing even more to the ongoing revenue slowdown at companies that sell to consumers.
The service providers who see their billing examined with a microscope and who are told that new projects are now on hold, in turn, find themselves forced to cut their own spending on people, services, and facilities, contributing even more to the ongoing revenue slowdown at other companies.
The office buildings who are given notice of lease terminations, in turn, find themselves forced to cut their own spending, contributing as well to the ongoing revenue slowdown at other companies.
The more every company and consumer cuts spending, the less money all companies and consumers earn. This unpleasant state of affairs is called a "recession." When it's really bad, it's called a "depression." It's no fun. Many unprofitable companies and many consumers without savings are at risk of financial ruin.
Re: Salesforce cut hundreds of employees Monday
#3Every company wants to cut spending on people, services, and facilities, because revenues are slowing down, costs are rising, and there's more uncertainty about the near term future. The people who lose their jobs, in turn, are forced to cut their spending, contributing even more to the ongoing revenue slowdown at companies that sell to consumers. The service providers who see their billing examined with a microscope…
> many consumers without savings are at risk of financial ruin
Yes. This is the reason for having a better social safety net. There's no reason a normal business cycle should "ruin" normal people that did not take excessive risks.
Re: Salesforce cut hundreds of employees Monday
#4Every company wants to cut spending on people, services, and facilities, because revenues are slowing down, costs are rising, and there's more uncertainty about the near term future. The people who lose their jobs, in turn, are forced to cut their spending, contributing even more to the ongoing revenue slowdown at companies that sell to consumers. The service providers who see their billing examined with a microscope…
> many consumers without savings are at risk of financial ruin Yes. This is the reason for having a better social safety net. There's no reason a normal business cycle should "ruin" normal people that did not take excessive risks.
Having no savings is not taking a risk?
Re: Salesforce cut hundreds of employees Monday
#5Earlier quoted context omitted.
> many consumers without savings are at risk of financial ruin Yes. This is the reason for having a better social safety net. There's no reason a normal business cycle should "ruin" normal people that did not take excessive risks.
Having no savings is not taking a risk?
Don't victim blame. Not every person or family is able to save, think about it a bit deeper than your personal bubble...
Re: Salesforce cut hundreds of employees Monday
#6Every company wants to cut spending on people, services, and facilities, because revenues are slowing down, costs are rising, and there's more uncertainty about the near term future. The people who lose their jobs, in turn, are forced to cut their spending, contributing even more to the ongoing revenue slowdown at companies that sell to consumers. The service providers who see their billing examined with a microscope…
In theory sure, but in practice a great deal of this is driven by earlier over investments by tech companies who saw a huge surge in profits during COVID lockdowns.
It wasn’t just online companies that benefited by changing consumer habits as people where stuck at home with little to do browsed social media and ordered food delivery etc. Setting up remote options across many industries had many similarities with the pre Y2K investments and a wave of modernization efforts. That followed by supply shortages which pushed massive investments to build more robust supply chains etc.
Re: Salesforce cut hundreds of employees Monday
#7Every company wants to cut spending on people, services, and facilities, because revenues are slowing down, costs are rising, and there's more uncertainty about the near term future. The people who lose their jobs, in turn, are forced to cut their spending, contributing even more to the ongoing revenue slowdown at companies that sell to consumers. The service providers who see their billing examined with a microscope…
As many of these companies base their projections on a relatively small number of outside sources, it often strikes me as a bit of a self-fulfilling prophecy.
Big business and financial firms have been signaling a belief in a downturn for a while now -- including while posting about record profits.
Re: Salesforce cut hundreds of employees Monday
#8Earlier quoted context omitted.
> many consumers without savings are at risk of financial ruin Yes. This is the reason for having a better social safety net. There's no reason a normal business cycle should "ruin" normal people that did not take excessive risks.
Having no savings is not taking a risk?
It takes a _long_ time to save up enough to manage through a year of unemployment.
A social safety net is always there.
Re: Salesforce cut hundreds of employees Monday
#9Every company wants to cut spending on people, services, and facilities, because revenues are slowing down, costs are rising, and there's more uncertainty about the near term future. The people who lose their jobs, in turn, are forced to cut their spending, contributing even more to the ongoing revenue slowdown at companies that sell to consumers. The service providers who see their billing examined with a microscope…
As many of these companies base their projections on a relatively small number of outside sources, it often strikes me as a bit of a self-fulfilling prophecy. Big business and financial firms have been signaling a belief in a downturn for a while now -- including while posting about record profits.
It's all related to taming inflation
Re: Salesforce cut hundreds of employees Monday
#10This is pretty small adjustment for a company their size and comes on the heels of several large acquisitions and a huge hiring spree. I'm not sure this is actually a headcount reduction or just a restructuring. They have over 3000 job openings listed on LinkedIn right now.