After Amazon, Salesforce has announced that it will be cutting approximately 10% of its total workforce and closing offices globally. Salesforce, an American cloud-based software company, announced on Wednesday that it will be continuing with layoffs due to lower revenue and high costs. Despite increasing hiring after the pandemic, the company is currently facing difficulties in managing expenses due to the ongoing economic slowdown. According to Reuters, Salesforce will incur charges of between $1.4 billion and $2.1 billion as a result of the layoffs, while only expecting to record revenue of between $800 million and $1 billion in the fourth quarter.

“The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions,” said the company’s co-CEO Marc Benioff in a letter to employees.

“For those who will be leaving Salesforce, our priority is to fully support them, including by offering a generous package. In the U.S., affected employees will receive a minimum of nearly five months of pay, health insurance, career resources, and other benefits to help with their transition. Those outside the U.S. will receive a similar level of support, and our local processes will align with employment laws in each country,” the letter further reads.

In November of last year, Salesforce laid off hundreds of employees following similar announcements by other tech companies, including Twitter and Meta. Initial reports suggested that Salesforce could potentially lay off as many as 2500 employees in 2022, as reported by Protocol. However, in a media statement, the company indicated that they would be laying off “less than a thousand” employees. It now appears that the number of layoffs will reach at least a thousand employees.