I sincerely hope that they won't cut more than 10%. However, many people I know are of the opinion that a significantly larger percentage will be cut. Thoughts?
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After Musk showed that he can operate a tech business by cutting 75% of its staff, I think anything is possible.
All large tech companies are cutting staff now. Microsoft for instance has a strict hire freeze, and Nadella was talking this week about a though time ahead, probably preparing the ground.
In the current context, 10% or 15% doesn't make any differences to the news cycle, so they may as well go for it now and be drastic.
There will be rolling lay off. Hiring was way out of whack. Salaries are too high. Reduce Opex by cutting head count, especially high salaried personnel to increase stock price. Cutting more than 10% at one time will substantially impact the business and customers. This will slow down once there is a balance of headcount and resources. Further Opex reduction is done by swapping for lowering salary resource or long tenure.
What does Salesforce do that low price cloud companies don't do cheaper, faster and better? It was great in 2005 when it was a superior low cost enterprise alternative to things like Peoplesoft, Microstrategy, or some nightmare of a custom Oracle solution (which Salesforce basically was).
Now you can get 90% of the functionality across all services for an undercapitalized startup on a shoestring budget, and these ERP/CRM/reporting solutions scale up to the enterprise nowadays. Do you need a mishmash of these products? Maybe, but that's no different than services from Salesforce.
Imagine that Salesforce acquired by private equity after years of declining profits, and you want to maximize your investment returns on that portfolio in a hurry. That's the kind of hungry mentality that Salesforce needs to have more and in the future.