Cloud-based software company Salesforce (NYSE:CRM) will lay off around 700 employees or 1% of its global workforce, the Wall Street Journal reported on Friday. However, the report stated that the company still had 1,000 positions open, suggesting that the action might be a routine workforce adjustment.
There is a wave of layoffs occurring in the tech industry, which includes tech giants Amazon (AMZN) and Google (GOOGL). Earlier this week, eBay (EBAY) announced it would slash about 1,000 jobs, or around 9% of its workforce, while Microsoft (MSFT) plans to lay off 1,900 employees at Activision-Blizzard and Xbox.
Salesforce already trimmed its workforce by 10% last year and closed some offices after the pandemic left it with more than the required number of employees.
Is CRM a Good Stock to Buy Now?
Analysts remain cautiously optimistic about CRM stock with a Moderate Buy consensus rating based on 27 Buys, 10 Holds, and one Sell. Over the past year, CRM has gained more than 65%, and the average CRM price target of $285.14 implies an upside potential of 2.2% at current levels.
