Salesforce Launches A Fresh Round Of Layoffs After Waning Demand

Salesforce (CRM) said is has laid off about 1000 employees, but analysts estimate as many as 2,000 workers could be let go before Thanksgiving.

“Our sales performance process drives accountability. Unfortunately, that can lead to some leaving the business, and we support them through their transition,” a spokesperson for Salesforce told CNBC.

The San Francisco-based software company is just the latest tech company to shed jobs or freeze hiring.

Twitter fired nearly half of its staff last week and Meta Platforms is also expected to trim its workforce this week. Salesforce had previously laid off 90 workers in October.

Salesforce has nearly tripled its workforce in the past five years, mostly through acquisitions. It reported 78,634 employees as of July 31.

The company spent $27.7 billion to acquire messaging platform Slack in 2020. Salesforce also purchased analytics service Tableau in late 2019.

The company in August reported second quarter earnings of $7.72 billion, up 22% from the previous year. Salesforce raised its full-year earnings guidance to about $31 billion, a 17% increase year-over-year.

Shares of Salesforce closed Tuesday at $147.13, up $2.54, or 1.76%.