Salesforce to Lay Off 10 Percent of Staff and Cut Office Space

The business software giant is laying off 10% of its work force and is scaling back office space because of concerns about the economy.

The company's chief executive said in a note to employees that customers are taking a more measured approach to their purchasing decisions.

During the Pandemic, more people around the world worked from home and relied on technology to collaborate with colleagues remotely, which resulted in a boom in revenue for the company. Mr. Benioff wrote that the company had hired too much.

The company employed over 80,000 people at the end of October, up from over 48,000 three years ago.

Mr. Benioff said that he takes responsibility for hiring too many people in the past.

In its most recent quarter, the company's sales grew 14 percent, the slowest pace in years, and it projected slower growth in its current quarter. Tech chiefs have recently admitted to hiring too many people as they rushed to cut costs. More than 150,000 tech workers were laid off last year.

San Francisco is home to the largest private employer in the city, as well as the city's tallest office building.

It was estimated that the changes would cost up to $2 billion. Mr. Benioff said that employees in the U.S. will be offered a minimum of five months of pay. He wrote that most of the cuts would come over the next few weeks.

The company's shares rose more than 4% before the market opened. Last year, the company's stock price fell.