Salesforce will lay off 10% of staff as part of restructuring
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Re: Salesforce will lay off 10% of staff as part of restructuring
#2Heard this has affected engineering too, not just or mostly sales as people were thinking or happened before. (I remember a hiring manager years ago telling me once that there hadn't ever been any layoffs, all I could think was "yet".) For those affected, typical full systems cut-off as well, not very ohana of them to just terminate with no notice...
Still, not unexpected given everything else going on. Glad I'm not competing for tech jobs at the moment.
Re: Salesforce will lay off 10% of staff as part of restructuring
#3Heard this has affected engineering too, not just or mostly sales as people were thinking or happened before. (I remember a hiring manager years ago telling me once that there hadn't ever been any layoffs, all I could think was "yet".) For those affected, typical full systems cut-off as well, not very ohana of them to just terminate with no notice... Still, not unexpected given everything else going on. Glad I'm not…
Not terribly surprising. Salesforce sells enterprise products — the sales team is basically a necessity; overly cutting salespeople would have a big revenue impact.
Re: Salesforce will lay off 10% of staff as part of restructuring
#4Heard this has affected engineering too, not just or mostly sales as people were thinking or happened before. (I remember a hiring manager years ago telling me once that there hadn't ever been any layoffs, all I could think was "yet".) For those affected, typical full systems cut-off as well, not very ohana of them to just terminate with no notice... Still, not unexpected given everything else going on. Glad I'm not…
I wonder if a lot of this is just redundancy from their acquisition binge.
Re: Salesforce will lay off 10% of staff as part of restructuring
#5> Stock rises after company announces broad restructuring plan focused on driving ‘profitable growth’
Could someone explain how layoffs lead to stock rises in layman terms?
Re: Salesforce will lay off 10% of staff as part of restructuring
#6> Stock rises after company announces broad restructuring plan focused on driving ‘profitable growth’ Could someone explain how layoffs lead to stock rises in layman terms?
Lowering costs --> higher profits.
Re: Salesforce will lay off 10% of staff as part of restructuring
#7> Stock rises after company announces broad restructuring plan focused on driving ‘profitable growth’ Could someone explain how layoffs lead to stock rises in layman terms?
same explanation on how a PR that removes more lines of code than it writes can be good for the overall system
Re: Salesforce will lay off 10% of staff as part of restructuring
#8> Stock rises after company announces broad restructuring plan focused on driving ‘profitable growth’ Could someone explain how layoffs lead to stock rises in layman terms?
Stockholders likely think Salesforce had too much fluff and can get the same results with fewer staff.
For example I believe they were working on some sort of solution for managing NFTs.
Re: Salesforce will lay off 10% of staff as part of restructuring
#9makes sense given their employee to revenue ratio for Salesforce. They had 73,000 employees with just ~31B/year of revenue. That’s just 424k of revenue per employee.
Such a ratio only makes sense with high growth rates.
Re: Salesforce will lay off 10% of staff as part of restructuring
#10I forget which podcast I heard it on (so forgive me if my memory is sloppy), but after their latest quarterly report didn't CAC payback go from 24 months to something wild like 10 years? Meaning their new ARR add rapidly fell off so quickly, before they adjusted their Sales and Marketing salaries and spending, that it immediately put their unit economics way way way way underwater.
So I'd expect at least a big chunk would be S&M cuts, even through of course you still need salespeople.
10% of a 75k company is still 7k people. From the King of SaaS. Wild times.