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Salesforce (NYSE:CRM) layoffs are coming for the customer relationship management technology company’s employees as it focuses on streamlining operations.
Insider reports claim that Salesforce is going to cut 700 jobs, or 1% of its workforce. However, these job cuts may not be a sign of weakness at the company.
Instead, traders will note that Salesforce continues to have 1,000 open positions available. That makes it likely that these latest cuts are routine. It’s also possible some of the employees affected by the layoffs could end up in those open roles.
These new Salesforce layoffs follow a 10% reduction in its headcount last year. The tech company is among those that have cut jobs after increasing hiring in the pandemic amid increased demand for online services. With that demand dwindling post-lockdowns so does the company’s need for extra employees, reports Reuters
Salesforce Joins Layoffs Movement
Many companies have been laying off employees recently to prepare for 2024. Several are predicting a rough year with worries about inflation and interest rates behind the job cuts.
Investors will keep that in mind as it means more job cuts will likely be announced in the near term as companies realign their workforces.
CRM stock is up slightly as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.