Marc Benioff, Co-CEO of Salesforce.com Inc., during a panel session on the second day of the World Economic Forum in Davos, Switzerland, May 24, 2022.
Jason Alden | Bloomberg | Bloomberg | Getty Images
Marc Benioff Salesforce’s The co-founder and soon-to-be-sole CEO hinted at an all-hands meeting on Thursday that further job cuts could take place, people familiar with the matter said.
The virtual meeting came a day after Salesforce announced it would cut 10% of its more than 7,000 jobs. After hours, Amazon It said it would cut 18,000 jobs. Tech companies are cutting jobs for the first time in years, given slowing growth, rising interest rates and a possible recession.
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Benioff expressed concern about the productivity of some parts of the sales organization. About half of his executives on his Salesforce account resulted in more than 95% of his deals, he told employees, according to two people who attended the video. Another person said the meeting was scheduled for an hour but lasted more than two hours.
One of the attendees told CNBC that Benioff attributed the lack of productivity primarily to new account executives.
luck previously reported at the meeting.
During and in the years leading up to the pandemic, Salesforce expanded rapidly as cloud adoption skyrocketed. The company accelerated its growth through major acquisitions such as Slack and Tableau.
Now, Salesforce is cutting headcount in the face of slowing sales growth and activist investors worried about operating leverage. In November, co-CEO Brett Taylor, who was seen as Benioff’s successor, announced his abrupt resignation after a year’s share of the top job.
Last month, Benioff posted a Slack message to all employees, asking for ways to make new staff more productive. At Thursday’s meeting, Benioff voiced his displeasure with the media coverage that has surfaced regarding his comments.
According to one attendee, Benioff said:
The person said Benioff spent a lot of time answering questions about Salesforce’s future.
Salesforce did not immediately respond to a request for comment.
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