Marc Benioff, co-CEO of Salesforce.com Inc., between panel sessions on the second day of the World Economic Forum in Davos, Switzerland, on May 24, 2022.
Jason Alden | Bloomberg | beautiful pictures
Marc Benioff, sales force co-founder and soon-to-be sole CEO, indicated in an all-hands meeting on Thursday that there could be more downsizing, according to people with knowledge of the matter. this problem.
The virtual meeting came a day after Salesforce announced that it was 10% job cut, up to more than 7,000 positions. A few hours later, Amazon say it will the number of employees is less than 18,000. Tech companies are shrinking their workforces for the first time in years as they attribute slowing growth, rising interest rates and a potential recession.
related investment news
Benioff expressed concerns about productivity in parts of the sales organization. About half of Salesforce account executives brought in more than 95% of deals, he told employees, according to two video attendees. Another said the meeting was scheduled for an hour but went on for more than two hours.
One of the attendees told CNBC that Benioff said the lack of productivity was largely due to new account executives.
Asset previously reported on the meeting.
During the pandemic and in the years before that, Salesforce expanded rapidly as cloud adoption skyrocketed. The company has fueled its growth in part through major acquisitions like Slack and Tableau.
Now, Salesforce is cutting back due to slowing revenue growth slow down and when it faces a active investor Pay attention to operating leverage. In November, co-CEO Bret Taylor, who is seen as Benioff’s obvious heir, announced Unexpected departure after a year of sharing top work. He is expected to leave at the end of January.
Last month, Benioff posted a Slack message to all employees asking for How to make new hires more productive?. During Thursday’s meeting, Benioff expressed disappointment at media reports that emerged regarding his comments.
“One of our core values is trust,” said Benioff, according to one of the attendees.
The person said Benioff took a long time to answer questions about the future of Salesforce.
Salesforce did not immediately respond to a request for comment.
CLOCK: Jim Cramer says more tech layoffs after Salesforce cuts 10% of headcount
