Salesforce Follows Other Tech Giants with Layoffs, Hiring Freeze

Salesforce has instituted layoffs and a hiring freeze.

According to Protocol, at least 90 employees were impacted by this round of layoffs, which represents a tiny fraction of the cloud giant’s 78,000 employees globally. “While limited hiring continues, most departments have reached their hiring goals for the fiscal year,” a company spokesperson told the publication. “As a result, we have ended contracts with some temporary recruiting contractors.”

The current layoffs won’t impact nearly as many employees as the last significant round in August 2020, when the company laid off 1,000 employees as part of a “repositioning” of the workforce. Salesforce’s hiring freeze will extend through January 2023.

Other tech giants have been cutting their staff lately. For example, Microsoft recently unleashed layoffs (which it termed “structural adjustments”); Axios reported those cuts totaled “under 1,000 workers.” Intel is also reportedly contemplating “thousands” of layoffs.

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But even as they trim staff and institute hiring freezes, the tech giants continue to pay their technology professionals significant compensation. Much of this is driven by the need to retain their best and brightest workers, especially with other companies constantly on the hunt for unique talent. At Salesforce, salaries for mid-level specialists such as software developers and product managers can easily drift into the six-figure range.

For those technology professionals impacted by layoffs at big tech companies, keep in mind that smaller companies (including some startups) are seeing the current economic uncertainty as a great opportunity for finding and hiring talent. According to Reuters, some startups have boosted their hiring plans and pay packages to draw in talent that would otherwise head to bigger companies like Google or Meta.  

For tech professionals everywhere, any economic turbulence is a good reminder to keep your skills current. Updating your resume, online profiles, and other job-hunt materials on a regular basis will allow you to spring quickly at a new opportunity.

One Response to “Salesforce Follows Other Tech Giants with Layoffs, Hiring Freeze”

  1. Jake_Leone

    The last recession,didn’t really impact tech, See Eric Schmidt’s comments on the 2008 recession. It is not likely the current recession will affect tech much either.
    Salesforce makes a huge profit per employee, this year and next. This could only be a situation where Salesforce wants to scare people back to the office. (Ironically, it is Halloween season). Someone has to leave, because management is out of ideas, and never really had any. And now, they are obsessed with a paranoia for their management position, hence everyone back to the office, or else.
    Managers are really worried about work from home. It is a high risk situation for them, when you don’t add any technical value to the product, all you can add is your ability to act as a baby-sitter, and the Pandemic proved, Office Baby Sitters are not needed.
    Even Twitter, for the first time in a decade, added features to its product during the Pandemic.
    Now if Twitter, where workers only work 4 hrs a week, even when they are in the office, can still add features (during the wfh pandemic and for the 1st time in 10 years of in office presence). What about companies where there is actually pressure to add features and complete tasks?
    Twitter went from zero innovation, to at least reactionary innovation, during the Pandemic.
    Companies with motivated employees, must be experiencing a huge surge in employee skill improvement and overall technical capability.
    At my company, our special projects day (where employees are given a few days to develop a special project and then give a presentation). That went from about 90 submissions (pre-pandemic) to well over 250 in the middle of the Pandemic.
    Obviously, profit growth could be impacted, for Big Tech, during the recession. But it might not take any hit to profit growth at all.
    These layoffs, the only reason for them, is to scare employees back to the Office.
    Non-technical middle management, is the biggest drag on Big Tech. (Hey half of Twitter’s staff is content moderation, non-technicals have taken over Big Tech, and in doing so destroying profitability)
    BTW, Elon’s plan for Twitter, cut 75% of the staff. And completely appropriate, as Twitter would then become profitable, and employees (wfh or in the office) would be motivated to work overtime and enjoy their tech career.
    If you are in tech, if you are not fighting for every minute you can at the job. If you are not arguing with your family about “Why are you (studying, working) on the weekend?”. Why are you even in a tech career?
    I fight for every minute I can to learn and grow. And I am thankful, that that 4hr/day Bay Area commute has been converted to 4 hrs/day of additional study and work time.
    Programming rocks, it is at once relaxing, cushy, and rewarding.