Marc Benioff has lost his successor.
Last week, Salesforce revealed the heir apparent Bret Taylor's plans to leave the company — exactly one year after taking over as co-CEO alongside Benioff.
Since then, the exodus hasn't stopped. Five top executives from Salesforce and its subsidiaries, most notably Slack CEO Stewart Butterfield and Tableau CEO Mark Nelson, announced their departure just days after Taylor.
Company insiders attribute these departures to Benioff's response to the company's accurate economic headwinds: As Salesforce's outlook dips after a successful few pandemic years, the cofounder is exerting increasing control over the company, alienating his closest lieutenants while dialing up performance pressure on employees.
Insider spoke with a dozen current and former employees who requested anonymity because they weren't authorized to speak with the press. Their identities are known to Insider. Salesforce declined to comment for this story.
The departures have created a crisis in leadership at Salesforce. As the company tries repeatedly to make a succession plan for Benioff, the cofounder seemingly won't let go — and is increasing his influence with a recession looming.
"Now that the market is tough, Marc behaves as if he has complete control," a person close to Benioff told Insider, saying Benioff was increasingly interfering in the part of the business Taylor was meant to run and dialing up the pressure on sales teams.
Every quarter, Salesforce executives meet at locations around the world to review the business, from staffing to the company's various products. Lately, employees said, Benioff has turned those meetings into a tribunal for his sales executives.
Executives defend their team's performance, and if they miss their target, they must be apologetic and show contrition, one person who attended the meetings told Insider.
"If this happens for a couple of quarters, they are expected to leave," the person added.
While the coronavirus pandemic was a boon for the company, Salesforce has since trimmed its annual revenue projections to roughly $30 billion, down from the roughly $31 billion in May. The company's stock value has also plummeted, trading at half the value of its share price from this time last year.
Benioff sees the sales team as key to Salesforce's recovery.
"The sales organization is in Marc's eyes the most important within the company," the person who attended the quarterly meetings said. Benioff sees the sales team as the largest driver of growth at the company. "If the sales don't come in," the person said, "he's pretty impatient. People understand they live and die by the sword."
Benioff has always had high growth expectations for sales leaders, an employee who left recently said. "If you look at the track record of Marc and his patience with sales leaders, it's amazing how many he's gone through," the person said.
In November, Salesforce laid off hundreds of employees. One former employee, who was on the sales team, said the majority of cuts happened on their team targeting sales representatives who hadn't closed a significant deal within the past six quarters.
Rumors are swirling inside the company about another round of layoffs to come this month.
The sales representatives who remain have to meet what some insiders called unrealistic new mandates, like making daily in-person meetings throughout the holiday season and returning to working in the office despite Benioff's public statements saying workers were just as productive at home.
Some employees speculated much of these internal pressures might be related to the activist investor Starboard Value, which disclosed a significant stake in Salesforce in October, just before the layoffs. The firm first approached Salesforce this summer and spoke with some of its executives, and a person familiar with the matter told Insider it had since pushed for cost-cutting measures.
Employees said these changes were indicative of a larger cultural shift at Salesforce. Where once the company was rated one of the best firms to work for, they said, its welcoming "Ohana" culture is being replaced by a ruthless prioritization of metrics and sales targets. Perhaps fittingly, even its most accurate layoffs were referred to internally as a "performance management event."
But even in Benioff's internal note to employees addressing Taylor's departure, he stressed the importance of the sales team.
"More than ever, we need everyone across the company to stay laser-focused on working together to support our Sales team and deliver an incredible Q4," Benioff wrote. "This is our highest priority."
As Benioff puts pressure on sales executives, people close to him said he's exerting increasing control over C-suite executives.
According to an internal org chart, viewed by Insider, Taylor was supposed to oversee 10 top executives running five key parts of the company: finance, operations, engineering, staffing, and marketing. Benioff's reports include the executive in charge of Salesforce's philanthropic efforts, the Salesforce Advisory Board chair, and a person in charge of "trust and safety."
But according to a source close to Benioff, the co-CEO model wasn't working.
"They were stepping on each other's toes and getting in each other's way, not staying within the agreed-upon swim lanes, and the business wasn't performing," the person said. "Mix all of that together and there's one outcome: The junior guy goes."
Benioff and Taylor also disagreed on the fundamentals of running the company. One person said Taylor worried more about profitability and Benioff was more worried about growth. "Wall Street has been looking for significant improvement in operating margin, and that was Bret's focus." the person said.
Taylor didn't respond to a request for comment. Salesforce declined to make Benioff available for an interview.
It's not the first time the co-CEO model has failed for Salesforce.
Keith Block, the company's former co-CEO, resigned in 2020 after infighting with Benioff, a source close to Benioff said. While Benioff was supposed to remain CEO only for 18 months before Block took over entirely, Benioff had trouble letting go. Eventually, he asked that several executives continue to report to him rather than Block.
"You were either one of Keith's people or you were one of Marc's people," the person said. "In public, they would always portray this closeness — 'we finish each other's sentences' kind of thing. Behind the scenes, they were fighting."
The last straw came when Benioff tried to install Taylor, who was in his camp, as chief operating officer without consulting Block. Block chose to resign rather than take over as the sole CEO. Block didn't respond to a request for comment.
Taylor's departure has been less acrimonious than Block's. Benioff was "genuinely shocked and upset," a source close to both executives said. On the company's latest earnings call, Benioff made a passionate appeal to Taylor: "We love you deeply, you have a home here, we're going to try to get you back somehow. Don't think you're going to somehow get out of this alive, because you're not."
The person close to Taylor suggested the executive was also burned out from trying to run Salesforce while also navigating the takeover of Twitter, as the chairman of the social-media company's board. "The Twitter fight was worse and harder on him than expected," the person said.
Taylor's departure means Salesforce has to find a replacement not only for him but eventually for Benioff as well.
"Just when Benioff thought he had a succession plan all figured out, Taylor steps down," a high-level employee who left recently said. "That's going to hurt until they find someone else of that caliber to run Salesforce's main business."
Salesforce has a narrow bench of candidates for either, insiders said. Internally, some employees have speculated CFO Amy Weaver could take over for Taylor, while others think his exit is the end of the company's co-CEO model.
"Marc either has to be the sole CEO or just the chairman and bring in a CEO," the person said. "Anybody who has any sort of standing will ask, why did it fail so many times and why is it going to be different for me?"
Are you a Salesforce employee or do you have insight to share? Contact Ashley Stewart via email (email@example.com) or send a secure message from a nonwork device via Signal (+1-425-344-8242).
After Twitter and Meta laid off thousands of employees in a matter of days, Salesforce, the world’s largest provider of sales and management software, announced today (Nov. 9) it too is cutting hundreds of jobs amid slowing revenue growth from its small- to medium-sized clients. It’s a sign the economy might be in worse shape than jobs data suggest.
Layoffs at tech companies have dominated news headlines in accurate months. But so far, the rapid jobs cuts in Silicon Valley, which represents a tiny slice of the U.S. labor market, has largely fallen out of tune with the rest of the economy, where the unemployment rate remains at historical low levels and job openings are at record highs.
But the spread of layoffs to companies like Salesforce indicates that businesses are not only cutting back on advertising spending, as shown in the revenue slump at Google and Meta, but also curbing investments in digital infrastructure. Technology and sales are usually the last areas businesses cut budgets for in times of economic uncertainties, according to a July survey of more than 200 CFOs by market research firm Gartner.
“These cuts could indicate macro headwinds might be stiffer than anticipated,” investment bank Jefferies said of Salesforce’s layoffs this week in a note to clients today.
The planned layoff will affect workers with “performance issues” and likely take place before the Thanksgiving holiday, Protocol first reported Nov. 8. “Our sales performance process drives accountability. Unfortunately, that can lead to some leaving the business, and we support them through their transition,” the company said in a statement.
Salesforce employed about 78,000 people as of February, according to the company website. Like many tech companies, it hired aggressively during the pandemic. In an August filing with the Securities and Exchange Commission, Salesforce said it had increased its workforce 36 percent in the past year to meet higher demand for its products.
Salesforce sells cloud-based software designed to help businesses manage marketing campaigns, sales and customer service. Its enterprise applications are used by more than 150,000 companies large and small around the world, about 60 percent of which are located in the U.S., according to its website.
However, in its most accurate quarterly report, Salesforce warned profit and revenue this year would likely be lower than previously estimated. Demand was slowing down among small and medium-sized business clients, particularly in North America and Europe across communications, consumer goods, media and retail sectors, Amy Weaver, Salesforce’s chief financial officer, said in a call with analysts in August.
Bret Taylor, Salesforce’s co-CEO, said on the same call executives at some of its client companies are scrutinizing software purchases more carefully, resulting in longer time it takes to close a sale.
Salesforce’s top competitor in enterprise software, Germany’s SAP, has frozen hiring for the rest of the year but has avoided a massive layoff so far. Another major software rival, Microsoft, laid off a few hundred employees in July and announced additional job cuts in October.
Salesforce stock is down 44 percent this year, compared with S&P 500’s 22 percent decline. It currently has a market cap of $142 billion.
Club holding Salesforce (CRM) is set to report fiscal third-quarter 2023 results after the closing bell Wednesday, and we'll be looking to see how the enterprise software maker has weathered gathering macroeconomic headwinds.
More than 1000 sacrificed
Salesforce is one of the latest tech companies to let go of employees.
It is believed that more than a thousand workers have been seen leaving Salesforce buildings with their personal gear in an old photocopy paper box.
In January, Salesforce had 73,541 employees. In August, the company revealed that year-over-year, its headcount had increased by 36 per cent, so the latest round of layoffs will still leave the firm with more employees than it had in August 2021.
But when Salesforce saw its staff numbers increase it said it was to look after the huge number of customers it was getting.
Amy Weaver, Salesforce’s finance chief, said in August that demand among small and medium-sized businesses in North America and Europe slowed down.
Sectors that reduced their demand for Salesforce’s services included communications, consumer goods, media, and retail. As business falls, Salesforce sees a need to reduce costs and this comes in the form of making employees redundant.
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Salesforce cofounder and co-CEO Marc Benioff speaks during the grand opening of the Salesforce Tower, the tallest building in San Francisco, Calif., Tuesday, May 22, 2018.
Karl Mondon | Bay Area News Group | Getty Images
Salesforce reported earnings and revenue on Wednesday that beat analyst expectations. It also announced that co-CEO Bret Taylor is stepping down. CEO and Salesforce co-founder Marc Benioff will the be sole person in charge of the company.
Salesforce stock fell over 6% in extended trading.
Here's how the company did versus Refinitiv consensus estimates for the quarter ending in October:
Salesforce said it expected between $7.9 billion to $8.03 billion in revenue in the company's fourth fiscal quarter, lower at the midpoint than analyst expectations of $8.02 billion in sales in the fourth quarter. The company also said it would take a $900 million hit in sales because of foreign currency effects.
Salesforce's total revenue increased 14% year-over-year. Last quarter, Salesforce trimmed its year-end estimates for both revenue and earnings, citing a weaker economic cycle. It reaffirmed those estimates on Wednesday.
Salesforce said that its operating cash flow came in at $313 million for the quarter, which was a decrease of 23% year-over-year.
Subscription and support revenue, which includes the company's flagship Sales Cloud software and comprises the majority of the company's sales, came in at $7.23 billion, which was up 13% year-over-year.
The Platform and Other category that includes Slack reported $1.51 billion in sales, an 18% increase year-over-year.
Salesforce spent $1.7 billion on share repurchases during the quarter, the company said.
The city’s largest private employer could continue to downsize its office footprint, executives said in a accurate earnings call.
Salesforce CEO Marc Benioff said there will continue to be flexibility for employees who want to work from home, while Chief Financial Officer Amy Weaver said the software company is continuing to evaluate its real estate holdings. Salesforce did not respond to a request for comment as of publication.
Cloud-based CRM software provider Salesforce has become the latest technology company to announce mass layoffs, cutting at least hundreds of jobs from its 73,000-person workforce.
“Our sales performance process drives accountability. Unfortunately, that can lead to some leaving the business, and we support them through their transition,” Salesforce said in a statement confirming the layoffs.
Salesforce has experienced a relatively successful year financially, with the company’s second quarter revenue rising 22% year on year, driven by rapid adoption of its cloud-based CRM and other sales management tools. The company is facing pressure to cut costs since last month when activist hedge fund Starboard Value took a stake in the company and immediately called for Salesforce to increase its margins, although Starboard didn’t explicitly call for a workforce reduction.
Salesforce is not the only tech company to announce job cuts this month. Last week, Twitter’s new owner, Elon Musk, fired almost half of the social media platform’s workforce in addition to the company’s senior leadership team.
Meta has also announced it is reducing the size of its workforce by 13%, leading to 11,000 employees losing their jobs. In a statement, Meta CEO Mark Zuckerburg said that the company would also be taking a number of additional steps to become a “leaner and more efficient company,” by cutting discretionary spending and extending our hiring freeze through Q1.
The year so far has been tough for investors as all markets have been falling so far this year. We are dealing with high inflation, rate hikes by the central banks, and a serious threat of a recession in the near term. It is therefore no surprise that markets are down by double digits. But where most investors might be down over 10% this year, it is not all just negative. The current market does offer us some very interesting buying opportunities as some companies keep growing earnings and pop up as very resilient. But even these companies are down significantly. The best thing we investors can do now is to identify the stocks that are undervalued as a result of the downturn (and of course don’t panic sell your existing holdings).
Technology stocks have been the winners over the last couple of years, or actually, for the last decade or so. Covid gave another boost to growth stocks as technology services became increasingly important as people were forced to stay at home and work from home. As a result, a lot of these technology companies were massively overvalued at the end of 2021, even though a lot of these companies were not even profitable. But the environment has changed drastically, and people are not willing to pay for unprofitable companies in the way they were a little over a year ago.
One of the companies that has been growing at a rapid pace is CRM software company Salesforce (NYSE:CRM). The big difference for Salesforce, of course, is that this company is profitable. Salesforce is down over 40% this year, despite the accurate rally. As a result, the stock price has only increased by 40% over the last 5 years. Meanwhile, revenue has grown from around $7 billion in FY16 to approximately $22 billion in FY22, meaning revenues have more than tripled over the last 5 years.
It is the drop in share price so far this year that caused me to start following Salesforce. I think it is a very interesting business and I like software companies in general. Generally, these companies have very high margins and are believed to be more recession and inflation-resistant. I cannot imagine businesses cutting on their CRM systems as these might even increase in importance when times get tough.
I currently do not own any shares in Salesforce. The company has always been a bit too expensive for my taste, while profits were almost non-existent. Now, as I mentioned earlier, the drop in share price so far this year for a quality business like Salesforce did attract my interest. For that reason, I will try to find out within this article whether Salesforce is a buy at current prices. This is my initial thesis on Salesforce and so I will do a company deep-dive.
Salesforce is an American cloud-based software company with its headquarters in San Francisco, California. Salesforce provides CRM software and applications with a focus on sales, customer service, marketing automation, and analytics. Salesforce made its IPO in 2004 and has grown to a market cap of $154 billion today. Salesforce is one of the largest cloud-based companies on the planet.
Customer 360 is the CRM software Salesforce offers to its customers and has been the #1 CRM system in the world for many years now.
Nowadays, more than 150,000 companies use Salesforce’s CRM platform and use it to grow their business and increase customer relations. What CRM does is help companies understand their customers’ needs and solve problems more effectively through an all-in-one platform that includes all information you need to serve your customers in the best way possible.
You can imagine from the introduction above that Salesforce still has a load of growth prospects. Their dominant position in CRM offers them the ability to expand their platform and upsell their customers or expand into other industries and services while using their huge existing client base to sell these products. In September Salesforce held its annual investor day and this gave us some new insights into the future potential for Salesforce.
Salesforce expects its total addressable market [TAM] to continue to grow at a 13% CAGR until 2026 and to reach a massive $290 billion.
One key point regarding Salesforce’s customer 360 is the change in the cloud environment. An increasing number of businesses use multiple cloud vendors. More cloud vendors mean more annual recurring revenue [ARR] for Salesforce. Salesforce provided a nice overview of the difference in ARR per number of cloud providers and this shows the massive potential as more and more businesses shift towards multiple cloud vendors as the cloud grows in importance.
This is reflected in Salesforce’s financial results as 20% of customers use more than 4 cloud vendors, but these customers account for 85% of ARR. Salesforce believes it can use its land-and-expand strategy to boost ARR growth over the longer term as it plans to upsell to existing customers.
Salesforce also still sees a lot of growth potential through geographic expansion. According to Salesforce, there is still a large part of its TAM untapped, and it sees potential to drive new market opportunities. Salesforce has seen its ARR grow at a 21% CAGR in North America over the last three years, while ARR from international markets has grown at a 27% CAGR. Despite this strong growth, Salesforce remains to believe it has plenty of room to expand at a similar pace over the next couple of years. ARR is the best kind of revenue for Salesforce as it is a predictable revenue stream and less sensitive to economic problems and a potential recession. The majority of revenue is subscription revenue and therefore recurring annually.
According to Salesforce, they should be able to grow their revenue to a massive $50 billion by 2026, growing revenue at a 17% CAGR and doubling revenue compared to last year. Salesforce currently projects $31 billion in revenue for FY23. I feel like the goals Salesforce is aiming for might be a bit too high. If we take into consideration the possibility of a potential recession, it seems unlikely that Salesforce is going to double its revenue by FY26. Yet, I would not say it is impossible as I feel like Salesforce has a relatively stable business that should not be hurt as much as many others.
In addition to significantly increasing revenue by FY26, Salesforce also wants to increase its margins. It believes it can do this by benefitting from its land-and-expand strategy, product innovation, an increase in brand awareness through networking, and system automation. This all should lead to a 25%+ non-GAAP operating margin by FY26.
Salesforce has been a great player regarding business innovation over the years and it is not planning on stopping now. Salesforce plans on bringing a whole bunch of innovations in 2023 which should boost platform attractiveness and upsell opportunities to increase ARR.
In addition to business growth, Salesforce confirmed it will stay active in M&A when they believe it will be a significant addition to its product portfolio. Also, Salesforce announced its first-ever share repurchase program. Management authorized a $10 billion share repurchase program. This is very good news for investors, although I am not sure whether I would rather see Salesforce invest this money into the business. Yet, it does confirm that management believes the stock is currently undervalued.
Of course, I already shared the outlook Salesforce presented regarding market growth by using their TAM. According to Allied Market Research, the CRM market is expected to grow at an 11.1% CAGR from 2020 to 2027 and will reach a market size of close to $100 billion. Since CRM is the main business for Salesforce and they are the largest player by a fair margin, as is shown by the graph below, I expect them to profit from this industry growth. Salesforce even grew its market share over the last 5 years to a massive 23.8% in FY21. This shows us Salesforce is in a great position to benefit from market growth. Now, how is this strength reflected in their accurate financial results?
On August 24th Salesforce presented its second-quarter results. Revenue came in at $7.72 billion, showing 22% YoY growth and 26% on constant currency. Subscription revenues for the quarter were $7.14 billion and grew 21% YoY. Non-GAAP EPS was $1.19, while GAAP EPS was significantly lower at just $0.07. Management stated the following:
Our results demonstrate the strength and diversity of our product portfolio across regions, industries and segments. In this more measured buying environment, our Customer 360 portfolio is even more strategic and relevant as our customers focus on productivity, efficiency and time to value.
Management confirmed what I said earlier and that is that its Customer 360 platform will be of increasing importance to businesses as it increases efficiency and productivity in times when this is crucial. This is also part of the reason I do expect Salesforce to remain relatively stable in revenue, even if we see a severe slowdown.
The operating margin for the second quarter came in at 19.9% non-GAAP and GAAP margin of only 2.5%. In addition, operating cash flow came in at $330 million, which is a 14% decrease YoY and free cash flow was just $130 million, 24% lower YoY. This might also immediately bring on a big problem with Salesforce, its profitability. Yes, there is a profit, but cash flows are low for a business earning over $30 billion in revenue annually and existing for over 20 years.
Growth for the quarter remained very strong on the top line, but the bottom line saw a significant decrease, which was disappointing. If we look at the revenue split by region, we see that the strongest growth was visible in the EMEA region, which grew by 23% YoY and 35% YoY on constant currency. APAC saw 17% growth and 31% constant currency. Growth in the Americas was a solid 22%. This does show that growth for the international markets is growing faster, most likely because of a lower penetration of the market in these regions.
The outlook for the third quarter is also not the most positive one. Salesforce will report its third-quarter results later this week on November 30th. For this quarter Salesforce expects revenue between $7.82 - $7.83 billion, representing just 14% growth YoY and a serious slowdown compared to previous quarters. Non-GAAP EPS is expected to be between $1.20 and $1.21.
As a result, Salesforce now expects FY23 revenue (current fiscal quarter) of $31 billion on the top end, up 17% YoY. FY23 margin is expected to be 20.4% on a non-GAAP basis.
Salesforce does have a solid balance sheet with total cash of $13.5 billion at the end of its 2Q23. This was an increase of 40% YoY. Total debt was $14.3 billion, meaning Salesforce has a negative net debt position of about $800 million. I really like the cash position of Salesforce as it does provide the company a lot of opportunities regarding M&A, but also investing in business opportunities. I am less of a fan of the debt position, but as this is almost fully covered by its cash, this should not be a problem for now. Salesforce is not generating loads of free cash flow at the moment, so debt should not go much higher for my taste. The 40% YoY increase in its total cash position is positive as it shows the business is fully capable of generating free cash flow.
Salesforce is currently valued at a forward P/E of 31.25 and is therefore 44% undervalued compared to its 5-year average, yet it is also not particularly growing at the same rate as it did the last 5 years. Salesforce receives a C- from Seeking Alpha for its valuation as the stock is still not cheap compared to its (slowing) growth rates.
Current analyst estimates are projecting 17% growth for the current fiscal year, in line with management expectations. For FY23 (or fiscal FY24 for Salesforce) analysts project 14.4% revenue growth and 16% for the two years after that. That would mean Salesforce would reach close to $48 billion in revenue by FY26, not reaching management's current goal of $50 billion. I am personally very curious to see whether Salesforce will be able to manage to grow the business by 14% over the next fiscal year. This will highly depend on the severity of a potential recession. I think analysts' estimates for revenue to come in around $48 billion by 2026 seem fair. Bottom line growth is expected to grow at a faster pace closer to 20% per year until 2026.
All in all, I still think Salesforce is richly valued, but the significant decline so far this year has made the stock a lot less expensive. If Salesforce would manage to grow its top line by over 14% next year, which I doubt, I think the stock is fairly valued at prices around $150/160 per share. I do want to add to this that if growth would come in closer to 10% or lower next year, there is still significant room for downside to around $120 per share. Personally, when comparing the growth outlook and current price, I would be comfortable with opening a small position or slowly adding to an existing position.
We have discussed the upside potential for Salesforce so far, but now it is time to turn to a bit more of a negative view and look at the risks of an investment in Salesforce. Of course, one of the main risks for a growth stock with a higher valuation in the current environment is the risk of more downside. Salesforce is, as discussed above, still not cheap and if the economy would make a turn for the worse, there would still possibly be significantly more downside for Salesforce through valuation contractions. Later this week Salesforce will report its 3Q23 earnings and it will be crucial for Salesforce to report solid numbers. The outlook is already guiding for slowing growth. Also, this quarter will provide us a better look at how resilient the business and growth are. In the case of a disappointing quarter, this could have a significant impact on the fiscal 2024 expectations as well.
On November 8th, CNBC reported that Salesforce reportedly laid off hundreds of employees, and job cuts could jump as high as 2500. So far, according to CNBC, less than 1000 workers lost their jobs. Salesforce did not respond to the matter so far but will probably provide us some information about it when they report their earnings next week. It could already point to lower expectations for growth by management and the need to save costs. Laying off personnel is never a good sign, but it could be a good move by management to increase its top line in the case of a slowdown. It is something to keep an eye on next week.
Finally, I want to point out that cash flows remain to be low, except for the fourth and first quarters. This does not leave much room for mistakes for Salesforce. I prefer companies with more of a solid bottom line, but I expect Salesforce to significantly increase their bottom line over the next years as less money will be needed for R&D.
Salesforce is a great company, with strong management, a dominant market position, strong growth ahead, and a solid balance sheet. The main issue for Salesforce remains its valuation as this creates the most risk for a lower share price. A lot will depend on what Salesforce will report later this week when they report their 3Q23 earnings. Despite all near-term weaknesses and uncertainties, I do think the long-term thesis for Salesforce is strong and the current share price is not a bad one to start a position in this dominant enterprise software company. Long-term growth will be supported by growth in cloud computing, CRM industry growth, and business expansion.
I feel like the company is a hard one to judge. I think the company is right in between a buy and a hold. Yet, as I do believe in the long-term potential of the business and the valuation has come down significantly to more acceptable prices, I rate the company a buy at current prices and under current growth assumptions.
I will keep a close eye on earnings later this week and will update the thesis if necessary. For now, I rate Salesforce a buy on a strong growth outlook driven by industry growth and business expansion. I recommend being careful with buying this stock and adding or buying small bits split over time as near-term problems might cause the share price to trade lower.
On Monday, Salesforce laid off hundreds of employees, the San Francisco tech giant’s second round of layoffs this year. It follows an earlier round in October, when 90 people — primarily contract workers in the recruiting department — lost their jobs.
Salesforce did not disclose how many San Francisco employees were laid off. Most of those affected were part of the company’s sales department, Axios reported. Salesforce has also frozen hiring until January 2023.