Salesforce cutting 10% of staff, hired ‘too many people’

Salesforce is kicking off 2023 by significantly trimming its headcount and closing some offices.

In an email to staff on Jan. 4, the enterprise software maker announced that it’s cutting approximately 10 per cent of its workforce in a bid to reduce costs.

“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,” co-CEO Marc Benioff said in the note to employees.

Salesforce didn’t disclose how many Canadian workers are impacted by the latest reduction or which offices are closing.

The restructuring comes after several major North American tech companies announced sweeping layoffs in 2022.

Cisco, Amazon, Meta, Twitter, Hootsuite, Microsoft, Shopify, and Snap are among those who have substantially reduced their workforces as they monitor market conditions.

According to Salesforce’s website, the company employs more than 78,000 workers globally.

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Termination agreements for Salesforce employees

As part of the layoff announcement, Salesforce said it will offer a “generous package” to workers who are leaving the tech giant.

Affected employees in the U.S. will receive “a minimum of nearly five months of [severance] pay, health insurance, career resources, and other benefits to help with their transition.”

The company added that impacted staff outside the U.S. will receive “a similar level of support, and our local processes will align with employment laws in each country.”

In Canada, non-unionized employees and senior executives at Salesforce are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance packages in mass layoffs
• Severance for technology industry employees
• Rights to severance for provincially regulated employees

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.