<p>Salesforce said it plans to cut jobs by 10 per cent and close some offices, after rapid pandemic hiring left it with a bloated workforce amid an economic slowdown.</p>.<p>The cloud-based software firm said on Wednesday the job cuts would lead to about $1.4 billion to $2.1 billion in charges, while only about $800 million to $1 billion will be recorded in the fourth quarter.</p>.<p>Companies from Meta Platforms to Amazon.com have slashed thousands of jobs in the past year, in preparation for a recession, expected as a result of aggressive interest rate hikes by global central banks to curb inflation.</p>.<p><strong>Also Read — <a href="https://www.deccanherald.com/business/tech-companies-keep-slashing-jobs-in-uncertain-2023-economy-1178022.html">Tech cos keep slashing jobs in uncertain 2023 economy</a></strong></p>.<p>Businesses that relied on cloud services during the pandemic are now trying to reduce expenses and are delaying new projects, hurting companies such as Salesforce and Microsoft Corp.</p>.<p>"The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions," Salesforce co-Chief Executive Officer Marc Benioff said in a letter to employees.</p>.<p>"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."</p>.<p>Salesforce had nearly 80,000 employees at the end of the third quarter, up from about 70,000 a year earlier.</p>.<p>The company said in its quarterly regulatory filing that it increased headcount "to meet the higher demand for services".</p>.<p>Salesforce shares were up 3 per cent on Wednesday. They lost roughly half their value in 2022 as Salesforce posted four consecutive quarters of slowing growth.</p>.<p>"It (the company) is certainly not alone as the sector has grappled with a demand environment that has meaningfully softened over the last 12 months," William Blair analyst Arjun Bhatia said.</p>.<p>The move puts Salesforce in a good position to meet its 2026 target of 25 per cent operating margin but the macro backdrop could pose risk to its $50 billion revenue target, Bhatia said.</p>.<p>"There is high likelihood of right-sizing by other software firms," RBC Capital Markets analyst Rishi Jaluria said.</p>
<p>Salesforce said it plans to cut jobs by 10 per cent and close some offices, after rapid pandemic hiring left it with a bloated workforce amid an economic slowdown.</p>.<p>The cloud-based software firm said on Wednesday the job cuts would lead to about $1.4 billion to $2.1 billion in charges, while only about $800 million to $1 billion will be recorded in the fourth quarter.</p>.<p>Companies from Meta Platforms to Amazon.com have slashed thousands of jobs in the past year, in preparation for a recession, expected as a result of aggressive interest rate hikes by global central banks to curb inflation.</p>.<p><strong>Also Read — <a href="https://www.deccanherald.com/business/tech-companies-keep-slashing-jobs-in-uncertain-2023-economy-1178022.html">Tech cos keep slashing jobs in uncertain 2023 economy</a></strong></p>.<p>Businesses that relied on cloud services during the pandemic are now trying to reduce expenses and are delaying new projects, hurting companies such as Salesforce and Microsoft Corp.</p>.<p>"The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions," Salesforce co-Chief Executive Officer Marc Benioff said in a letter to employees.</p>.<p>"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."</p>.<p>Salesforce had nearly 80,000 employees at the end of the third quarter, up from about 70,000 a year earlier.</p>.<p>The company said in its quarterly regulatory filing that it increased headcount "to meet the higher demand for services".</p>.<p>Salesforce shares were up 3 per cent on Wednesday. They lost roughly half their value in 2022 as Salesforce posted four consecutive quarters of slowing growth.</p>.<p>"It (the company) is certainly not alone as the sector has grappled with a demand environment that has meaningfully softened over the last 12 months," William Blair analyst Arjun Bhatia said.</p>.<p>The move puts Salesforce in a good position to meet its 2026 target of 25 per cent operating margin but the macro backdrop could pose risk to its $50 billion revenue target, Bhatia said.</p>.<p>"There is high likelihood of right-sizing by other software firms," RBC Capital Markets analyst Rishi Jaluria said.</p>