Salesforce Considers More Layoffs Amid Activist Pressure: Report

Salesforce is considering another round of layoffs as it seeks to boost profits, according to a report.

“The structure of the organization—if we feel like it needs to change and reshape—we’re going to make those moves to drive the efficiencies,” Salesforce chief operating officer Brian Millham told Bloomberg.

The San Francisco-based tech giant is working with the consulting firm Bain & Co. in a review of its business. Bain & Co. has yet to provide its final recommendations, according to the report.

Another round of job cuts at Salesforce would be the second set of layoffs the company has had this year.

In January, CEO and founder Marc Benioff told employees that the company expanded too quickly during the pandemic and needed to eliminate 10% of its workforce—the largest-ever layoff at the firm. That round affected 752 employees at its San Francisco offices.

Salesforce didn't immediately respond to a request for comment.

The company has come under pressure from multiple activist investors in recent months clamoring for changes at the firm.

Those investors include Elliott Management, one of the largest activist funds in the world. That company bought a multibillion-dollar stake in Salesforce last year, initially pushing to seize seats on the board of directors. Other activists that piled into Salesforce included Starboard Value, Third Point, Inclusive Capital and ValueAct.

In a joint statement on Monday, Salesforce and Elliott Management said that the latter firm had dropped its plan to nominate directors and was pleased with Salesforce's progress in improving profitability and shareholder value.

In its latest earnings release, Salesforce ratcheted up its profitability targets for fiscal 2024, sending its stock soaring.

"I have thoroughly enjoyed getting to know [Jesse Cohn, Managing Partner of Elliott] and the Elliott team over the last few months, and I am grateful for Jesse’s mindful and constructive ideas," Benioff said in a statement on Monday.

Millham, Salesforce's chief operating officer, also told Bloomberg that although the company hasn't issued a mandate, it is urging employees to work in-person more frequently and that office attendance is up.