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This story is from March 25, 2023

Salesforce layoffs cross 8,000; COO says the company may cut more jobs

Salesforce may undergo another round of job cuts as the company seeks to improve profitability, according to the firm's chief operating officer, Brian Millham. Following January plans to remove 8,000 staff, or 10% of its workforce, there have been calls from activist investors for further cuts to improve earnings and profit margins. San Francisco-based Salesforce has been working with consultant Bain & Co. to review the business, however, no final recommendations have yet been given.
Salesforce layoffs cross 8,000; COO says the company may cut more jobs
The job cuts continue to ravage the technology industry globally. Recently, social networking giant Facebook and ecommerce behemoth Amazon announced that they will be cutting more jobs. With this, job cuts at Amazon will touch 27,000 and those at Facebook cross 20,000. For Amazon this is the third round of job cuts and Facebook second.
Now Salesforce reportedly may see another round of job cuts.
According to a report in Bloomberg, Salesforce may go for more job cuts as the company continues to focus on improving profitability, its chief operating officer Brian Millham said.
“The structure of the organization — if we feel like it needs to change and reshape — we’re going to make those moves to drive the efficiencies,” Millham reportedly said in an interview. He added that consultant Bain & Co., which Salesforce is working with to review the business, has yet to provide final recommendations.
Announced job cuts in January 2023
In January this year, Salesforce announced that it would eliminate 10% of its workforce, or about 8,000 employees. This is the company's biggest-ever headcount reduction. It is also closing offices across the US. According to the report, a group of activist investors who have taken stakes in the company are pushing to cut costs further in search of increased earnings and improved profit margins.
Millham joined the company as its 13th employee in 1999 and was promoted to chief operating officer in 2022. He has taken over some of the operational and customer-facing responsibilities previously held by co-chief executive officer Bret Taylor before he left the company earlier this year, including appearances on earnings calls.
“From the very beginning this was a performance-oriented culture,” Millham said. “We may have drifted a bit from that during the pandemic as we took care of our employees and made sure everyone was staying healthy.” He added that he wants Salesforce to have both a performance and wellness culture. “We feel pretty good about what we’ve been able to deliver so far,” Millham said, before adding “it’s not a job that’s done by any stretch,” he reportedly added.
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