Salesforce COO hints more job cuts, says company's structure needs to be changed and reshaped

Many people all throughout the world had a difficult start to the year 2023. Numerous businesses made significant layoff announcements, with tech behemoth Salesforce among them.

Around 7,000 workers worldwide were affected by the company's decision to lay off about 10% of its workforce, which it announced in January of this year. Additionally, Salesforce employees may soon face another round of layoffs.

Another round of layoffs

In an interview with Bloomberg, Salesforce COO Brian Millham stated that the firm may need to "change and reshape" its organisational structure and that if that is the case, they will take the required actions to increase "efficiency."

He said, "The structure of the organisation- if we feel like it needs to change and reshape - we are going to make those moves to drive the efficiencies."

He also told the publication that consultants Bain & Co were reviewing operations. However, they had not recommended anything yet.

Salesforce CEO Marc Benioff announced the company's decision to lay off around 7,000 people in January this year.

The CEO had sent a letter to employees that read, "The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions. For those who will be leaving Salesforce, our priority is to fully support them, including by offering a generous package."

"In the U.S., affected employees will receive a minimum of nearly five months of pay, health insurance, career resources, and other benefits to help with their transition. Those outside the U.S. will receive a similar level of support, and our local processes will align with employment laws in each country."

CEO's digital detox after layoffs

Benioff said in an interview with The New York Times that he used a 10-day digital detox that included a trip to French Polynesia to cope with the burden of firing employees.

Benioff said that following the announcement of the Salesforce layoffs, he travelled to French Polynesia for a 10-day "digital detox" as per an India Today report.

The report also mentioned that after the layoffs, he held a virtual company meeting in which he spoke for about two hours. Terming the meeting as a ‘bad idea’, Marc Benioff said, “We were trying to explain the inexplicable.”

He added, “It’s hard to have a call like that with such a large group and have it be effective, and we’ve paid the price for that.”