Salesforce lays off 86 employees, continues acquisition and buyback spree
Salesforce is conducting another round of layoffs, cutting 86 jobs at its San Francisco office on August 7. This occurs amid the company's ongoing acquisition strategy, including its latest agreement to purchase revenue management firm m3ter. The tech giant is also executing a significant $50 billion stock buyback program, following a period of share value decline.
Key points
- Salesforce announced it will lay off 86 employees from its San Francisco office on August 7.
- This marks the second round of layoffs at Salesforce this year.
- The company has also agreed to acquire revenue management software firm m3ter.
- Salesforce is proceeding with a $50 billion share repurchase program approved earlier this year.
- The layoffs and acquisitions occur after Salesforce shares lost over 30% of their value in the past year.
Salesforce is undertaking another round of workforce reductions, with a WARN notice filed with California authorities indicating 86 employees will be laid off from its Mission Street office in San Francisco on August 7. This follows an earlier round of cuts this year, though the exact total number of affected employees in this latest instance remains unclear. The company, which employed approximately 83,000 people globally as of January 31, has not immediately commented on the layoffs.
These staff reductions coincide with Salesforce's aggressive acquisition strategy and a substantial stock buyback initiative. On the same day the layoff notice was filed, Salesforce confirmed an agreement to acquire m3ter, a company specializing in revenue management software, for an undisclosed sum. This latest deal represents the 13th acquisition announced by Salesforce in the past year, building on recent agreements like the purchase of Contentful as part of its expansion into "headless" CRM.
Simultaneously, Salesforce is actively repurchasing its own stock under a $50 billion authorization. This buyback program follows a challenging period where the company's shares depreciated by more than 30%. CEO Marc Benioff had previously highlighted the company's strong cash reserves during a recent earnings call, describing the past quarter as "outstanding."
Sources
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