Salesforce, the cloud-based customer relationship management software company, has announced a restructuring plan that will result in the layoff of approximately 10% of its workforce and the closure of some of its offices.
In a letter to employees, Co-CEO Marc Benioff acknowledged that the company had hired too many people in the months leading up to the current economic downturn, and stated that he takes responsibility for the decision. Benioff did not specify which offices will be closed or how many employees will be affected by the layoffs.
The restructuring plan comes as the company faces economic challenges brought on by the COVID-19 pandemic. While Salesforce’s revenue accelerated during the pandemic, the company has also faced increased competition and a shift in customer demand.
In his letter, Benioff emphasized that the restructuring is necessary to position the company for long-term success and growth. He stated, “We must make these tough decisions now to ensure that we’re in the best position possible to emerge from this crisis as a stronger company.”
Salesforce is not the only company to undertake layoffs and office closures in response to the pandemic. Many businesses have been forced to make difficult decisions as they struggle to adapt to the economic realities of the crisis.
Despite the challenges, Benioff remained optimistic about Salesforce’s future. He said, “I believe that Salesforce has the talent, the technology, and the vision to emerge from this crisis as a stronger company, and I know that together, we’ll get through this and come out on the other side.”
The restructuring plan is expected to be implemented over the next several weeks. Salesforce has not provided further details on the plan or the specific impact it will have on employees and offices.
Salesforce, founded in 1999, is one of the world’s largest providers of cloud-based customer relationship management software. The company has more than 50,000 employees and operates in more than 150 countries. Its software is used by businesses of all sizes, from small startups to Fortune 500 companies.