Employment Law

Salesforce Trims Workforce: 700-Employee Layoff and Streamlining

A laptop displays coding in various windows. Salesforce Canada employees are entitled to severance when they lose their job.

What’s happening at Salesforce?

Salesforce is cutting about 700 employees, representing around one per cent of its global workforce, according to The Wall Street Journal.

This move follows a series of workforce reductions executed last year, and an ongoing staff purge in the global tech industry.

A source told the WSJ that the the cuts are aimed at helping the company focus its spending.

Changes to employee benefits and travel

The company also curtailed certain employee benefits, including retreats, and implemented stricter travel expense policies.

Despite these layoffs, Salesforce is actively advertising for approximately 1,000 new roles, indicating these cuts may be part of routine workforce adjustments.

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In 2023, under CEO Marc Benioff’s leadership, Salesforce laid off about 10 per cent of its total workforce.

This action was partly in response to demands from activist investors for increased margins.

Salesforce layoffs in Canada

It remains unclear if Canadian employees will be affected by this fresh round of layoffs at Salesforce.

According to the company’s website, it has more than 1,600 workers in the country.

Termination agreements for Salesforce employees

In Canada, non-unionized employees at Salesforce are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

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

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

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

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.

If you don’t receive the correct amount, which happens often, you have been wrongfully dismissed and should take legal action.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

• Severance for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements during a recession

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Major layoffs continue

The reported cuts at Salesforce come amid a flurry of layoffs in 2024.

Notable employers, including Levi Strauss, Microsoft, Rona, eBay, Brex, Wayfair, Amazon, YouTube, Newell Brands, Instagram, Citigroup, BlackRock, and Indigo, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

• Firm launches $130M class action against Shopify for breach of contract
Cloudflare, Discord workers post layoffs online: Employee rights
Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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