US cloud-based software giant Salesforce Inc. (NYSE: CRM) has announced that it is laying 10% of its workforce of 73,500. The company has 780 employees in Tel Aviv and dozens of them will be hit by the cuts. Following the announcement of the streamlining plan by Salesforce founder and CEO Benioff, the company's share price rose 4.3% on Wall Street.
Salesforce provides enterprises with software such as customer management systems, marketing and sales, as well as software development and information systems management products. Among its prominent brands is the Salesforce Marketing Cloud system, a highly priced marketing management and automation system that is being challenged by cheaper systems such as Hubspot. Rival products such as those of Oracle have also been hit by weak sales and hundreds of employees worldwide have been cut.
Benioff said, "As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that."
He added, "The economic environment remains challenging and our customers are taking a more measured approach in their purchasing decisions.
Salesforce will close some offices worldwide and the company sees costs of between $1.4 billion and $2.1 billion related to the plan in the current quarter.
Published by Globes, Israel business news - en.globes.co.il - on January 4, 2023.
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