Salesforce to cut one-in-10 jobs as tech layoffs spread
Irish employees told to expect meetings with management
Salesforce, which employs over 2,100 people in Ireland, has announced that it is to cut 10pc of its workforce.
Under a restructuring plan aimed at cutting costs, the company added that it would close some global offices.
The software firm has not yet clarified its plans for its Irish operations. It recently developed a new campus in Dublin’s docklands, which acts as its European headquarters and which can accommodate over 3,000 workers.
The news follows significant staff cuts in other Dublin-based tech multinational firms such as Meta and Twitter, and comes as other big companies prepare to clarify their 2023 plans as part of scheduled quarterly financial statements.
“As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that,” said the company’s founder and co-CEO Marc Benioff in a letter to employees.
He added that “employees who are “initially affected by this decision” would have received an email by lunchtime yesterday.
A number of Dublin-based employees, who spoke to the Irish Independent on condition of anonymity, said that they have been told to expect further meetings with local management on the issue in the coming weeks. However, the employees did not say that they have been told of specific job cuts.
The firm’s plans were published in a US regulatory filing. It has given itself until 2024 to lay off the 10pc of staff and until 2026 to divest itself of global offices it no longer plans to use.
“The company estimates that it will incur approximately $1.4bn to $2.1bn (€1.3bn-€2bn) in charges in connection with the [restructuring] plan, of which approximately $800m to $1.0bn is expected to be incurred in the fourth quarter of fiscal 2023,” the filing said.
“Decisions regarding the elimination of positions are subject to local law and consultation requirements in certain countries, as well as the company’s business needs.”
Mr Benioff added that affected employees are to receive a minimum of nearly five months of “pay, health insurance, career resources and other benefits to help with their transition” while “those outside the US will receive a similar level of support”.
Shares of technology firms have plunged as investors questioned the robustness of their earnings at a time of rising interest rates and slowing growth due to high inflation.