The company is cutting up to 10% of its staff. Benioff blamed mid-pandemic hiring practices.
Bloomberg | Getty Images The business environment remains challenging, and our customers are taking a more measured approach to their purchasing decisions, according to an email from Benioff. We decided to reduce our workforce by about 10 percent, mostly over the next few weeks.
"I've been thinking a lot about how we came to this moment, as our revenue accelerated through the pandemic, we hired too many people, and I take responsibility for that," he said.
Nearly five months of pay, insurance, and other resources will be given to employees of the cloud-based software company who are let go. According to a regulatory filing by Business Insider, the budget for all the costs in making cuts will cost as much as $650 million.
Facebook and Amazon have taken similar measures in anticipation of a looming recession. There will likely be more job cuts and restructuring in the coming months. Tough on employees and their families is necessary for companies to remain financially viable.
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