Salesforce announced better-than-expected earnings that sent the company's stock soaring to a new all-time high last week. Even having a great quarter in which it passed $5 billion in quarterly revenue for the first time, the company has confirmed a report in the Wall Street Journal that it was laying off around 1,000 people. Salesforce has nearly 54,000 employees, and this approximately makes 1.9% of the company workforce.
A spokesperson from Salesforce explains this as "reallocation." "We're reallocating resources to position the company for continued growth. This includes continuing to hire and redirecting some employees to fuel our strategic areas and eliminating some positions that no longer map to our business priorities. For affected employees, we are helping them find the next step in their careers, whether within our company or a new opportunity," the spokesperson said.
As Geekwire reported that those layoffs include an unknown number of employees within Tableau, the Seattle-based data visualization company that Salesforce acquired last year. Tableau had more than 4,200 employees at the time of its acquisition, including 2,100 in the Puget Sound area. Salesforce also directly employs about 1,100 people in the region.
In March, early in the coronavirus pandemic, Salesforce CEO Marc Benioff said the company would not do any "significant layoffs" over three months and would pay its hourly workers while the company's offices were closed. That time was up at the end of June.
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August 31, 2020 at 12:55PM
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Salesforce Is Laying Off Nearly A 1,000 Employee In Spite Of A Great Quarter - Forbes
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