A day after Salesforce reported hugely successful financial results, the business software company laid off nearly 1,000 workers.
Salesforce said that it is reallocating resources in an effort to maintain its growth. This includes continuing to hire employees to advance our strategic areas and eliminate some positions that no longer correspond to our business priorities,” said a Salesforce spokesperson.
The layoffs, will affect employees around all over the world, according to a familiar Person with the matter. The person said the job cuts will occur in almost all business units and are part of a plan to help the company move into newer business areas, including security, infrastructure and the public sector.
The company also raised its revenue guidance for fiscal 2021, from $ 20 billion to between $ 20.7 billion and $ 20.8 billion, underscoring the optimism of executives that the company will maintain its growth. .
The solid quarter with the layoffs pleased the investors to invest money. Shares of Salesforce rose 26% to $ 272.32 on Wednesday.
In March, early in the coronavirus pandemic, Salesforce CEO Marc Benioff won praise for saying the company would not make any “significant layoffs” over a three-month period and would pay its workers by the hour while the company offices were closed. That period has passed.
Other organizations that have disclosed layoffs amid the coronavirus pandemic include Microsoft’s LinkedIn unit, which said in July it would lay off 960 employees, and American Airlines Group Inc., which said in May it would cut 5,100 jobs.
