Salesforce Plans to Lay Off 10% of Overall Employees as Economy Slows

New Year's greetings are fading in Silicon Valley as tech behemoths set to lay off more employees. Amazon CEO Andy Jassy stated Thursday that the business plans to let off roughly 18,000 people in its e-commerce and human-resources units. While the announcement brought up memories of job layoffs from last year, another tech giant, Salesforce, disclosed plans to eliminate roughly 10% of its entire staff base and close operations worldwide.

When did Salesforce announce the layoff of employees?

The American cloud-based software business announced on Wednesday that it will continue laying off employees owing to its weaker sales record and excessive expenditures. 

Is the current economic recession the cause of mass firings?

Following the epidemic, the firm allegedly boosted recruiting but is now trying to manage to spend because of the current economic recession. According to Reuters, Salesforce would face layoff expenses ranging from $1.4 billion to $2.1 billion. However, in the fourth quarter, it will only generate $800 million to $1 billion in sales.

Salesforce co-CEO's note to the workers

"The climate remains tough, and our customers are exercising greater caution in their purchase decisions," said Salesforce co-CEO Marc Benioff in a note to workers.

"Our focus for employees leaving Salesforce is to fully assist them by providing a significant severance compensation. Affected employees in the United States will get at least almost five months of salary, health insurance, career advice, and other perks to assist their transition. Those living outside the United States will receive a comparable degree of assistance, and our local processes will be under local labor regulations, "The letter continues.

Did Salesforce fire employees in Nov 2022 as well?

Salesforce fired hundreds of employees in November of last year after announcing back-to-back firings at other major companies like Twitter and Meta. Protocol initially reported salesforce layoffs in 2022, and the report stated that the business might dismiss up to 2500 people. However, the corporation confirmed in a media release that it is cutting off "fewer than a thousand" staff. However, the number of laid-off employees is approaching a thousand.

Mass firing by Amazon

Meanwhile, Amazon plans to lay off workers in the following days. Amazon employs over 1.5 million people worldwide and will lay off approximately 18,000 workers this month. The letter to workers also stated that impacted employees would get the notice on 18 January. This wave of layoffs at Amazon is expected to impact personnel from the e-commerce and human resources departments significantly.

Amazon previously cut off roughly 10,000 employees across areas, including retail and human resources.