2022 was a tough year for investors as economic challenges, rate hikes, and uncertainties doomed companies and stocks alike. Many tech companies laid off employees. Today, Salesforce (NYSE: CRM) joined this list of companies.
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On Wednesday, Salesforce’s CEO, Marc Benioff stated in a letter to its employees that it was going to slash its workforce by 10% over the coming weeks as the “environment remains challenging.”
Benioff added, “I’ve been thinking a lot about how we came to this moment. As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that.”
CRM has also indicated that it will also reduce select office spaces and sell-off some of its real estate. The company has not indicated which real estate it will be selling.
The cloud-based software company expects that it is likely to incur charges in the range of $1.4 billion to $2.1 billion related to these actions.
Analysts are bullish about CRM stock with a Strong Buy consensus rating based on 27 Buys and seven Holds.
