A major reorganization that signals the $15.7 billion acquisition hasn't lived up to expectations was added to by the biggest round of jobs cuts in the company's history.
Mark Nelson, the Chief Executive Officer of the data analytic division, was ousted in December and more senior staff were axed on Wednesday as part of a plan to eliminate 10% of the company's workforce. The job reductions at the company as a whole were larger than the reductions at Tableau.
After a half-decade of rapid hiring and large acquisitions,Salesforce is trying to cut costs and integrate the companies it has purchased. The software maker lost half of its value in a single year. The job cuts made public Wednesday are less than half of the number of employees hired in the Pandemic, and follow the exit of co-CEOs and elimination of hundreds of sales positions in November.
The company's headcount grew due to acquisitions. 3,700 employees were added to the company when it was acquired bySalesforce in a deal that was the most expensive one in the company's history. The three deals cost close to $50 billion and are estimated to have cost around $27 billion. Workers in customer success roles were the hardest hit by the job reductions.
Thousands of people have been hired by the mergers.
Company filing
In a December keynote speech, the co-founder and CEO of the company highlighted the new integrations that are being used to treat the visualization tool as a visualization tool instead of a program. Since the acquisition, the division has grown at a slower pace than the rest of the company.
John DiFucci is an analyst for Guggenheim Research and he said that it makes sense that Tableau would have a disproportionate contribution to the layoffs. The company was not growing new business when it was purchased.
The company plans to reduce the amount of office space. According to the company website, the company has more offices in Seattle than any other city. There were three that were acquired in the deal. The company wouldn't say if it would be cutting space in the Seattle area.
The unit is a vital part of the product strategy and it was the subject of a question. A product that processes over 100 billion customer records is one of the things that Tableau contributes to.
Many of the original executives brought on board in the deals are no longer with the company. Three top executives, including co-founder and CEO Stewart Butterfield, said they were leaving and the division is now led by aSalesforce executive.
According to Insider, Mulesoft employees were affected by the cuts. About a year ago, it was reported that Mulesoft, a company that helps customers connect their software across the internet, was experiencing a slowdown in sales. San Francisco-basedSalesforce, the top seller of customer relations management software, was worried that the unit wouldn't produce the gains it expected after the exodus of key employees.
It seems that the executives of the company are less enthusiastic about the new division. When adjusting for length of time at the company, the corporate event transcripts show that Tableau gets less attention than other companies.
Analysts and executives don't talk much about Tableau.
The analysis of corporate event transcripts was done byBloomberg.
The shuffling at the division accelerated after Adam Selipsky left to run Amazon.com Inc. Nelson lost access to Selipsky's report to Taylor. Nelson was moved under executive vice president Syam Nair.
Nelson was one of the executives who were forced out of the company in the previous months. The philanthropic chief and other senior staff were let go.
The executives listed on the leadership site have left the company. According to the Internet Archive, the leadership web page ceased to exist in the year 2022. The page for the leadership of the company was shown today.
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