Subj : Salesforce could be set to cut even more jobs
To   : All
From : TechnologyDaily
Date : Tue Feb 28 2023 13:45:03

Salesforce could be set to cut even more jobs

Date:
Tue, 28 Feb 2023 13:30:40 +0000

Description:
Salesforce still needs to increase margins significantly, and reducing 
headcounts seems like a likely method.

FULL STORY
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A leaked document has claimed Salesforce could be cutting even more jobs as 
it chases higher margins. 

Seen by Business Insider , the document, known as Vision, Values, Methods, 
Obstacles, and Measurements (V2MOM) surfaces each year and is typically 
shared internally to give the CRM giant's workers an indication of the 
companys direction in the coming months. 

This year, it seems that its direction is to significantly increase profit 
margins, which will likely result in more mass layoffs following the 
redundancies of 10% of the companys workforce. Salesforce redundancies 

Its estimated that around half of the companys account executives bring in 
more than 95% of all sales, and in an effort to cut unnecessary spending as 
it moves to higher margins, Salesforce might be looking to get rid of some of 
its most unproductive workers. 

The companys fiscal year 2023 target for operating margins was 20%, which has 
been tweaked to the tune of 25% by fiscal year 2026. According to Business 
Insider, activist investor Starboard Value seems to be the one driving a 
31.7%-plus margin, and that in the next two years. 

All of this in an effort to catch up with better-performing companies like 
Oracle (43.3% margin) and Microsoft (46.6% margin). Read more 

 > These are the best recruitment platforms around 


 > Marc Benioff hints more Salesforce layoffs could be coming 


 > Salesforce is laying off thousands more workers and closing offices 

An extract from the V2MOM draft reads: Our margin growth is more important 
than revenue growth 

That same document also reportedly asked managers to cut bottom performers by 
5% a year as the company steers toward a more aggressive, performance-driven 
setup. It is thought that this figure has since been removed, asking managers 
instead to give employees a rating, rewarding top performers and cutting poor 
performers, to ensure the companys prosperous future. 

Benioff is said to have told workers in the company Slack channel that even 
this has been removed from the V2MOM, but its clear that the company has 
harsh targets for a financial reform. Affected by recent layoffs? Here are 
the best job sites



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Link to news story:
https://www.techradar.com/news/salesforce-could-be-set-to-cut-even-more-jobs


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