New year cheers are fading in the Silicon Valley as tech giants are planning to cut down more of its workforce. On Thursday, Amazon CEO Andy Jassy announced that the company is planning to eliminate over 18,000 employees across its e-commerce and human-resources departments. While the news brought back the horror of job cuts from last year, another Tech company– Salesforce announced to cut nearly 10 percent of its total employee count along with shutting down offices across the globe.
The American cloud-based software company revealed on Wednesday that it will continue layoffs due to the lower revenue record and high costs for a company. The company reportedly increased hiring after the pandemic, but is now struggling to manage expenses due to the ongoing economic slowdown.
According to Reuters, Salesforce will have to face $1.4 billion to $2.1 billion in charges in layoffs. On the other hand, it will only record $800 million to $1 billion in revenue in the fourth quarter.
“The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions,” said Salesforce co-Chief Executive Officer Marc Benioff said in a letter to employees.
“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,” the letter further reads.
Last year in November, Salesforce laid off hundreds of employees after back-to-back firings were announced in other tech companies, including Twitter and Meta. The layoffs at Salesforce in 2022 were first reported by Protocol and the report suggested that the company could fire as many as 2500 employees. But in a media announcement, the company affirmed that it is laying off “less than a thousand” of its employees. But now the number of laid off employees will touch a thousand.
Meanwhile, Amazon is also planning to lay off employees in the coming days. CEO Andy Jassey announced the layoffs in a message to staff citing “uncertain economy” has led the company to take this step. Amazon, which currently has around 1.5million employees across the globe will fire around 18,000 employees this month. The letter to staff further mentioned that impacted employees will get the message from January 18. This round of layoff in Amazon is said to majorly impact employees from e-commerce and human-resources organisations.
Amazon earlier laid off around 10,000 of its employees around departments, including in the retail division and human resources.In an official statement released by Amazon, David Limp – Senior Vice President of Devices and Services, confirmed the layoffs and said the company “will continue to work closely with each individual to provide support, including assisting in finding new roles.”