Salesforce Layoffs: Recent Cuts and Company Strategy
What is the reason for Salesforce layoffs?
Salesforce has undertaken another round of job cuts, slashing approximately 300 positions in July following an earlier reduction of 700 roles earlier this year. These cuts are part of the company’s ongoing efforts to streamline operations, as reported by Bloomberg on Monday (July 15), citing an unnamed source.
A Salesforce spokesperson, without specifying the exact number of layoffs, acknowledged, “Like any healthy business, we continuously assess whether we have the right structure in place to best serve our customers and fuel growth areas. In some cases, that leads to roles being eliminated.”
What was the company’s rationale behind the earlier job cuts?
According to reports, Salesforce had 72,682 employees as of the end of January. The earlier 700 job cuts, which amounted to about 1% of its workforce, were spread across the company, as per the Wall Street Journal’s report at that time. The rationale behind those cuts was described as a routine adjustment aimed at reallocating resources to other areas, especially with 1,000 job openings still available.
In January 2023, Salesforce made more substantial adjustments by reducing its workforce by 8,000 positions, constituting 10% of its workforce. This decision was attributed to a slowdown in customer purchasing decisions, as highlighted by Salesforce CEO Marc Benioff in a January 4, 2023, letter to employees.
What broader trends in the tech industry are influencing these layoffs?
The recent layoffs coincide with broader trends in the tech industry, where layoffs have exceeded 100,000 for the year, partly due to companies pivoting towards investments in artificial intelligence (AI). UiPath, a leader in AI-powered enterprise automation technology, announced a 10% reduction in its global workforce of 4,200 employees on July 9 as part of a strategic restructuring aimed at optimizing operating expenses and focusing on AI-driven innovation.
Severance Pay for Salesforce Employees in Canada
Non-unionized employees at Salesforce facing job loss due to downsizing or corporate restructuring are entitled to receive full severance pay under Canadian law. The severance package can span up to 24 months, contingent upon several factors. Employees who do not receive their complete severance entitlements have the right to pursue compensation and are advised to seek guidance from legal professionals to ensure equitable treatment.
At Whitten & Lublin, our dedicated employment lawyers are committed to assisting individuals in understanding their legal rights and securing appropriate compensation. If you have been impacted by recent layoffs at Salesforce, we encourage you to reach out to us for a consultation. You can contact us via our online portal or by phone at (416) 640 2667.