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Salesforce takes steps to avoid Brexit-related volatility

(Image credit: Image Credit: Salesforce)

Cloud-based software giant Salesforce has stopped registering some of its EU sales in the UK, instead moving them to Ireland, Germany and France.

The firm announced the changes in its annual report, citing the volatility of Pound Sterling following Brexit, which cost the company $79 million last year.

In order to minimise the impact of Brexit on its bottom line, Salesforce has started charging customers directly from local stores in France and Germany, and begun investing more heavily in its Dublin resources.

"Revenues in Europe were negatively impacted by approximately $79 million in fiscal 2020 compared to fiscal 2019 as a result of the strengthening British Pound Sterling," the company wrote in the report

"We recognise that there are still significant uncertainties surrounding the ultimate resolution of Brexit negotiations, and we will continue to monitor any changes that may arise and assess their potential impact on our business," it added.

Approximately a fifth of the company's annual revenue comes from Europe, according to a CloudPro report, and the continent - most notably Ireland - is considered an important piece of the Salesforce puzzle.

Allegedly, the company employs roughly 2,000 staff in the UK and had planned to hire roughly 3,000 more in Ireland within the next five years. It is not clear whether Brexit will affect these ambitions.