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Salesforce To Lay Off Hundreds

Wade Tyler Millward

Salesforce has plans to lay off hundreds of workers by the Thanksgiving holiday.

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Salesforce plans to lay off hundreds of workers by the Thanksgiving holiday as technology vendors feel the slowing economy.

The start of the layoffs is unclear but should happen before Thanksgiving, according to Protocol.

Although the news outlet put the number of workers laid off at up to 2,500, Axios put the number at hundreds.

In a statement to CRN, Salesforce attributed the layoffs to sales performance.

[RELATED: Tableau Channel Chief Out As Company Combines Partner Program With MuleSoft, Salesforce]

“Our sales performance process drives accountability,” according to Salesforce. “Unfortunately, that can lead to some leaving the business, and we support them through their transition.”

Salesforce has more than 70,000 employees. CNBC reported that Salesforce let fewer than 1,000 employees go Monday due to lighter demand for the company’s products – which include Slack, Tableau and MuleSoft.

Although possibly unconnected to the Salesforce layoffs, subsidiary Tableau parted ways with channel chief Julie Bennani last month as Tableau, MuleSoft and Salesforce join their partner programs together.

The reported layoffs come less than a month after Salesforce allegedly cut dozens of recruiting contractors and froze hiring. In October, activist investment firm Starboard Value bought a stake in Salesforce.

Earlier this year, Salesforce lowered its guidance for the amount of revenue it expects to see for the fiscal year, ending Jan. 31, 2023. It was the second haircut to guidance this year from Salesforce.

Salesforce is expected to report its next quarterly earnings this month.

Cloud vendor giants Amazon Web Services, Microsoft and Google Cloud also raised concerns over the economy in their October earnings reports. And Oracle has reportedly laid off hundreds of employees.

Some have taken to LinkedIn to try to use the big tech layoffs to boost their own employee base, including a recruiter with tech giant IBM, gaming and financial technology company Everi’s data science director, an executive with customer experience vendor Braze and an account manager with residential solar battery storage provider Sunnova.

Wade Tyler Millward

Wade Tyler Millward is an associate editor covering cloud computing and the channel partner programs of Microsoft, IBM, Red Hat, Oracle, Salesforce, Citrix and other cloud vendors. He can be reached at wmillward@thechannelcompany.com.

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