back to article Never mind record revenue and profit, the churn must go on: Salesforce trims workforce day after bumper results

To remind everyone that big biz loves to shave a few per cent off the workforce each year or quarter, regardless of its fortunes, we today present you Salesforce. The customer relationship management giant celebrated record revenues and incredible profit by announcing it will fire 1,000 workers; about two per cent of its …

  1. Cederic Silver badge

    companies aren't monoliths

    A company can as a whole be tremendously successful and still have non-performing divisions or owned entities, so making them profitable can require cost cutting even though the broader organisation is making a lot of profit.

    Similarly one reason a company may be making good profits is that it's conscientious about eliminating unnecessary cost and duplication; each acquisition will have come with its own HR, Corporate Comms, Finance, Marketing, Sales, IT Support, Billing, Collections and other departments. Salesforce probably don't need seven of each of those departments and would be mismanaged if they continued it.

    So it's easy to understand why they feel the need to make changes, and they do appear to be doing it in a relatively sensible way.

    It's just a shame that some good technologies (e.g. Mulesoft and Tableau) are being subsumed by Salesforce. Although I guess the alternative would've been Oracle, SAP, Microsoft or IBM.

    1. springsmarty

      Re: companies aren't monoliths

      That’s a good point about cost containment. At the same time, there could be unintended consequences. In particular, Salesforce needs to be careful about what it telegraphs to future acquisition targets in terms of employment stability.

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