Salesforce, a leading enterprise software company, is reportedly undergoing a reduction of approximately 700 jobs, constituting roughly 1% of its workforce of about 70,000 employees. This move follows a previous downsizing effort in which the company slashed approximately 10% of its workforce, amounting to around 8,000 employees, to address investor demands for cost reduction.

The decision to implement layoffs comes in the wake of challenging global economic conditions and mounting pressure to streamline operations. In January 2023, Salesforce announced a significant reduction of 10% of its workforce, affecting approximately 7,000 employees. The announcement was made during a two-hour, all-hands meeting conducted over a call.

In response to the previous year’s layoffs, CEO Marc Benioff acknowledged the challenges posed by the call announcing the job cuts. In an interview with The New York Times in February, Benioff expressed remorse over the handling of the situation, acknowledging that the call had negative repercussions and that the company paid a price for it.

The trend of job cuts extends beyond Salesforce, encompassing various tech industry giants such as TikTok, Google, YouTube, Amazon, Unity, and Discord in 2024. Google, for instance, has initiated layoffs affecting nearly 1,000 employees across multiple departments, including hardware and engineering teams. Similarly, YouTube is reportedly downsizing approximately 100 jobs in its creator management and operations sectors.

The tech industry is witnessing ongoing job losses, with over 7,500 employees from 46 IT and tech companies, including startups, experiencing layoffs within the first two weeks of the new year. This trend is attributed, in part, to the impact of generative AI (GenAI), which poses a significant threat to millions of jobs across the tech sector.

Globally, tech companies have laid off more than 425,000 employees throughout 2022 and 2023, with India experiencing over 36,000 job losses during the same period. The ramifications of these layoffs are felt across the industry, reflecting broader economic challenges and shifts in technological landscapes.

By : Kruthiga V S

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