Salesforce Layoffs at Own Reflect a Strategic Shift
Salesforce Inc., renowned as the leading provider of customer relationship management software, has announced job cuts at Own, the data management startup it acquired for nearly USD $2 billion. The layoffs, part of a strategic post-acquisition integration process, highlight Salesforce’s evolving approach to mergers and acquisitions.
What’s Behind the Layoffs at Own?
Salesforce informed Own employees this week that certain roles will no longer be required after “harmonisation” efforts. Employees in these roles will have end dates set for January 31. Meanwhile, other jobs have been designated as transitional, with contracts lasting three to twelve months to aid in integration efforts.
This announcement comes shortly after Salesforce finalised its acquisition of Own, which focuses on securing data across software applications. The move signals Salesforce’s attempt to streamline operations while incorporating Own’s capabilities into its Data Cloud offering.
How Has Salesforce’s Acquisition Strategy Changed?
The layoffs at Own represent a deliberate shift in Salesforce’s acquisition approach. In the past, Salesforce pursued rapid expansion through high-profile deals like its purchase of Slack in 2021 and Tableau in 2019. These acquisitions added thousands of employees but also brought higher costs and operational challenges.
Pressure from activist investors in late 2022 led Salesforce to rethink its strategy. The company disbanded its mergers and acquisitions committee and implemented a company-wide 10% workforce reduction in early 2023. Moving forward, Salesforce has committed to a more disciplined and cost-conscious acquisition strategy.
Why Is Own Important to Salesforce?
The acquisition of Own is Salesforce’s most significant purchase since its USD $27 billion acquisition of Slack. Own’s technology will bolster Salesforce’s Data Cloud, a tool that helps clients organise and analyse information across applications.
While the layoffs reduce Own’s workforce, the integration is expected to enhance Salesforce’s ability to secure and manage data, aligning with its strategic priorities.
Interestingly, even as Salesforce reduces its workforce at Own, the company announced plans to hire over 1,000 employees to support its new generative AI agent product. This dual approach reflects Salesforce’s focus on innovation while ensuring its acquisitions remain efficient and sustainable. The layoffs at Own reflect Salesforce’s commitment to refining its acquisition strategy in response to shareholder demands and changing market dynamics. By integrating Own’s expertise into its Data Cloud offering, Salesforce aims to maintain its leadership in data management while prioritising profitability and innovation.
Facing Job Loss After Salesforce Layoffs?
If you’re a non-unionized Own employee in Canada impacted by the recent layoffs following the Own acquisition, you may be entitled to severance pay. Severance amounts are determined by factors such as your length of service, position, and age and can range up to 24 months’ pay. In Ontario, layoffs affecting 50 or more employees could also trigger additional severance entitlements under provincial laws.
At Whitten & Lublin, our experienced employment lawyers are here to guide you through this difficult time. We can help you understand your legal rights, negotiate fair severance, and advise you on your next steps. If you’ve been affected by the Salesforce layoffs, reach out to us for a consultation. Contact us online platform or by calling (416) 640-2667