DESPITE RECORD EARNINGS, TOP SOFTWARE COMPANY TO LAYOFF 1,000 EMPLOYEES: DETAILS  

Leading cloud-based software leader Salesforce.com Inc. plans to cut about 1,000 jobs. This big move by the company has been made familiar to the employees to streamline its business even at a time when the firm records quarterly revenue and forecasts further gains. 

Taking a look into the sectors where the employees will be affected are - sales and customer-support roles are among those being eliminated. While in the U.S., the move affects few workers who sell the company’s software aimed at financial-services firms, health and life-science companies and other cloud sales teams. 

As per Bloomberg Quint reports, the layoffs are taking place in more than a dozen Salesforce locations around the world. Employees, who work on Service Cloud, Salesforce Platform and configure-price-quote software were also affected. 

The company is also giving its employees 60 days to search for a new job within the Salesforce organization. 

“We’re reallocating resources to position the company for continued growth. This includes continuing to hire and redirecting some employees to fuel our strategic areas, and eliminating some positions that no longer map to our business priorities. For affected employees, we are helping them find the next step in their career, whether within our company or a new opportunity," a Salesforce spokeswoman said. 

This massive job cut was earlier reported by the Wall Street Journal. Meanwhile, earlier this week, few employees were being told via videoconference that their positions would be eliminated, after Salesforce reported that revenue climbed 29 percent to $5.15 billion, Bloomberg further reported.

However, the company has also raised its forecast for annual sales, signaling the deepest effects of the pandemic-fueled recession. Giving an update on the job cut, Chief Executive Officer Marc Benioff recently said in a Bloomberg TV interview that the decision to cut jobs has always been difficult.   

Highlighting the shares of the San Francisco-based company, it surged 26 percent in New York bringing gains for the year to 67 percent. 

“There is no lifetime employment at Salesforce. Everything is performance-based. We are going to make job changes and shift and evolve as our markets shift and as our customers shift. Every year, Salesforce will rebalance 5 percent to 10 percent of its workforce to focus on strategic areas," Chief Executive Officer Marc Benioff added.

He had earlier pledged that the company would not conduct any significant lay offs for 90 days.