Shulou(Shulou.com)11/24 Report--

On the evening of January 4, Beijing time, it is reported that Salesforce, a US business cloud computing software developer, announced a restructuring plan today, including about 10% layoffs, aimed at reducing operating costs, improving operating profit margins and promoting profit growth.

According to Salesforce, the plan includes reducing the company's current workforce by about 10%, withdrawing real estate (renenting) in some markets and reducing office space.

Salesforce estimates that the costs associated with the restructuring plan are about $1.4 billion to $2.1 billion, of which about $800m to $1 billion are expected to be incurred in the fourth quarter of fiscal 2023.

These costs mainly include $1 billion to $1.4 billion related to employee transitions, severance payments, employee benefits and stock awards, and $450 million to $650 million related to office space reductions.

Of the total costs Salesforce expects to incur related to the program, about $1.2 billion to $1.7 billion will be future cash payments.

Salesforce expects that actions related to the restructuring of employees under the plan are expected to be largely completed by the end of fiscal year 2024, while actions related to real estate restructuring are expected to be fully completed in fiscal year 2026.

Mark Benioff (Marc Benioff), co-CEO of Salesforce, said in a letter to employees: "the environment remains challenging and our customers are taking a more cautious approach to buying decisions."

Benioff also said: "during the epidemic, our revenue continued to grow, causing us to hire too many staff." but now that we are facing an economic downturn, I am responsible for it.

Us tech giants, including Meta, Microsoft, Twitter and Snap, have cut more than 150000 jobs in 2022, according to Layoff.fyi, a website that tracks unemployment in the technology industry.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.