Customer relationship management (CRM) company Salesforce has cut 300 jobs this July, adding to the 700 roles it eliminated earlier this year. This move follows the trend of layoffs in the tech industry since the beginning of 2024.
Salesforce started to restructure and streamline its operations in 2023 by cutting its workforce by 10% at the start of the year, affecting around 8,000 employees.
A Salesforce spokesperson told Bloomberg that these layoffs align with the company’s efforts to continuously determine whether it has the proper structure to optimize service and business growth.
Broad layoffs across major tech companies
Financial software company Intuit has also announced its plan to lay off 1,800 employees, stating that 1,050 of those individuals failed to meet performance expectations.
Intuit CEO Sasan Goodarzi denied that the company is cutting costs but instead reallocating resources to key growth areas, particularly artificial intelligence (AI).
As of July 12, the tech industry has experienced over 100,000 layoffs, including those from various tech giants.
In February, equipment giant Cisco laid off 4,000 employees after a dip in product and service revenue.
In May, electric vehicle (EV) giant Tesla laid off approximately 600 employees at facilities and offices in California as part of its plan to reduce its global workforce by over 10%. Meanwhile, Google made around 200 employees redundant following its financial goals.
In April, Apple axed over 600 positions after its smartwatch and self-driving EV project had closed.
Behind all these layoffs are efforts to cut costs, improve efficiency, and integrate AI. Despite an improving global economic outlook, tech companies must cut costs and enhance efficiency.
Moreover, the growing role of AI continues to drive a significant market shift. Businesses are scrambling to keep up by reallocating resources to AI-powered technologies. This has resulted in a transition from traditional to new roles requiring updated skills and knowledge.
Layoffs in the tech industry are expected to continue as companies face uncertainty amid a shifting market.
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Intuit Cuts Over 1,000 Workers for Not Meeting Expectations. (2024, July 11). Business Insider. Retrieved July 21, 2024, from https://www.businessinsider.com/intuit-cuts-workers-not-meeting-expectations-hiring-in-other-areas-2024-7
Mayer, P. (2024, July 16). Salesforce confirms another round of layoffs. KRON4. Retrieved July 21, 2024, from https://www.kron4.com/news/bay-area/salesforce-confirms-another-round-of-layoffs/
Nunwick, A. (2024, May 13). Five biggest tech industry layoffs of 2024, so far. Yahoo Finance. Retrieved July 21, 2024, from https://finance.yahoo.com/news/five-biggest-tech-industry-layoffs-151712010.html
Robson, K. (2024, May 7). Tesla culling continues as staff in more teams are laid off. Verdict. Retrieved July 21, 2024, from https://www.verdict.co.uk/tesla-staff-cuts-continue-as-software-and-service-teams-see-further-layoffs/?cf-view
