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Salesforce lays off 1,000 staff despite strong quarter

(Image credit: Image Credit: Salesforce)

Only one day after releasing a stellar earnings report, which caused its stock to jump 26 percent to a record high, Salesforce has announced it will lay off up to 1,000 staff.

Speaking to CNBC, a Salesforce spokesperson explained the company is looking to “reallocate resources” in a bid to position the company for further growth.

“This includes continuing to hire and redirecting some employees to fuel our strategic areas, and eliminating some positions that no longer map to our business priorities,” the spokesperson said.

That doesn’t mean, however, that employees will simply be jettisoned from the business. Salesforce will give all affected employees 60 days to find a new job within the company, with the help of internal resources.

Employees that do not find a new position within the company, meanwhile, will receive severance and pay benefits for six months.

“We are helping them find the next step in their careers, whether within our company or a new opportunity,” explained Salesforce.

According to the same report, the company is also planning to list 300 new vacancies in early September.

Earlier this week, the company published an impressive earnings report, beating out all analyst estimates.

For the quarter, Salesforce reported earnings of $2.85 per share, including $1.44 non-GAAP. The company took in $5.15 billion in revenue, rising by almost a third (29 percent) year-on-year. Making mark-to-market adjustments on its strategic investments, it managed to boost its non-GAAP earnings by 58 cents a share.

Sead Fadilpašić

Sead is a freelance journalist with more than 15 years of experience in writing various types of content, from blogs, whitepapers, and reviews to ebooks, and many more, across sites including Al Jazeera Balkans, TechRadar Pro, IT Pro Portal, and CryptoNews.