Salesforce Slashes 300 Jobs, Emphasizes Cost Control Amid Tech Slowdown: Report

Author: Lekha Gupta | July 16, 2024 06:22am

Salesforce, Inc. (NYSE:CRM) reportedly cut around 300 roles to streamline operations, highlighting the tech industry’s ongoing focus on cost control.

The company made the job cuts this month, reported Bloomberg, citing a source familiar with the matter. In a statement, Salesforce confirmed the job reductions but did not provide specifics, per the report.

“Like any healthy business, we continuously assess whether we have the right structure in place to best serve our customers and fuel growth areas,” the report cited a spokesperson. “In some cases that leads to roles being eliminated.”

In January 2024, Salesforce laid off close to 700 employees, about 1% of its 70,000-strong workforce, following a previous reduction of 10% or around 8,000 workers in 2023. 

At the end of January, Salesforce had 72,682 employees.

Salesforce stock gained over 10% in the last 12 months. Investors can gain exposure to the stock via Vanguard S&P 500 ETF (NYSE:VOO) and Vanguard Total Stock Market ETF (NYSE:VTI).

Several tech companies disclosed headcount reductions this month, with Intuit Inc. (NASDAQ:INTU) laying off about 1,800 employees and closing its Boise and Edmonton sites.

Also, in July, UiPath Inc. (NYSE:PATH) revealed plans for restructuring actions to manage its operating expenses, including a 10% workforce reduction.

Another tech giant, Microsoft Corp. (NASDAQ:MSFT), carried out another round of layoffs, affecting various teams and regions.

Notably, the number of employees laid off in the tech sector increased by 304% in January 2024 as compared to December 2023.

Price Action: CRM shares are down 0.02% at $252.81 premarket at the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Posted In: CRM INTU MSFT PATH VOO VTI