Remember those Salesforce layoffs after that bumper Q2? Yeah, forget that, SaaS player set to hire 12,000 staff
(2020/09/21)
- Reference: 1600714814
- News link: https://www.theregister.co.uk/2020/09/21/salesforce_set_to_hire_12000/
- Source link:
Just weeks after Salesforce reported huge Q2 profits only to lighten the company payroll by more than 1,000 staff, the badass of CRM software has now said it plans to hire 12,000 or more people over the next year.
In a [1]tweet , CEO Marc Benioff declared that he was in hiring mode.
“Salesforce will add 4K jobs over the next 6 months & 12K over the next year. Join our 54K employee strong Ohana defining the future of software. Salesforce is the worlds fastest growing Top 5 enterprise software company,” he vowed
Although some are reading that as 16,000 new employees, only a cynic would suggest Benioff wanted to make his numbers look bigger and better than they actually are by counting some of the new hires twice. Salesforce has not responded to a request for clarity.
It is not clear either that the workers would be entirely new.
In August, the CRM biz celebrated record revenues and bumper profit by confirming [2]it was going to eject 1,000 workers – about two per cent of its headcount. The company said the departures would mostly come from the businesses Salesforce bought out in recent years, including Datorama, ExactTarget, MuleSoft and Tableau, the analytics and visualisation company [3]bought for $15.7bn in 2019.
At the time of the lay-offs last month, Salesforce said those affected would be given two months to find another role at the company. So, they may get a chance to get one of the new positions. If not, they have four-and-a-half months of severance pay to look forward to.
Benioff pocketed [4]$2.3m in April as Salesforce decided to award him a sizable bonus for company performance. Still it made up just a tiny fraction of his estimated $6.5bn net worth.
The reason for the fire and hire strategy is unclear. In its [5]Q2 ended 31 July , Salesforce announced $5.15bn in revenue, up 29 per cent year-on-year, while profit reached $2.63bn from $91m in the prior year. The financial strength caused the company’s share price to leap by an almost unprecedented 25 per cent.
With the duplication in roles from merging companies, it is possible there is a need to reduce the headcount. Or it could be that the bottom percentage of sales people were ditched. The hiring could be to keep pace with business demand: it's been a good year for Salesforce so far.
Those able to remain part of Benioff’s gang, at least those who are American citizens, can look forward to exercising their rights to suffrage come November. The CEO took time between tweeting about his “spiritual path” and general well-being to say [6]employees worldwide would be given time-off to vote in the forthcoming US elections. ®
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[1] https://twitter.com/Benioff/status/1306819210052427777
[2] https://www.theregister.com/2020/08/26/salesforce_staff_layoffs/
[3] https://www.theregister.com/2019/06/10/salesforce_shells_out_157bn_for_data_viz_biz_tableau/
[4] https://www.theregister.com/2020/04/01/salesforce_mega_founder_gets_spare/
[5] https://www.theregister.com/2020/08/26/salesforce_q2_2021/
[6] https://twitter.com/Benioff/status/1306869444111601664
[7] https://whitepapers.theregister.com/
In a [1]tweet , CEO Marc Benioff declared that he was in hiring mode.
“Salesforce will add 4K jobs over the next 6 months & 12K over the next year. Join our 54K employee strong Ohana defining the future of software. Salesforce is the worlds fastest growing Top 5 enterprise software company,” he vowed
Although some are reading that as 16,000 new employees, only a cynic would suggest Benioff wanted to make his numbers look bigger and better than they actually are by counting some of the new hires twice. Salesforce has not responded to a request for clarity.
It is not clear either that the workers would be entirely new.
In August, the CRM biz celebrated record revenues and bumper profit by confirming [2]it was going to eject 1,000 workers – about two per cent of its headcount. The company said the departures would mostly come from the businesses Salesforce bought out in recent years, including Datorama, ExactTarget, MuleSoft and Tableau, the analytics and visualisation company [3]bought for $15.7bn in 2019.
At the time of the lay-offs last month, Salesforce said those affected would be given two months to find another role at the company. So, they may get a chance to get one of the new positions. If not, they have four-and-a-half months of severance pay to look forward to.
Benioff pocketed [4]$2.3m in April as Salesforce decided to award him a sizable bonus for company performance. Still it made up just a tiny fraction of his estimated $6.5bn net worth.
The reason for the fire and hire strategy is unclear. In its [5]Q2 ended 31 July , Salesforce announced $5.15bn in revenue, up 29 per cent year-on-year, while profit reached $2.63bn from $91m in the prior year. The financial strength caused the company’s share price to leap by an almost unprecedented 25 per cent.
With the duplication in roles from merging companies, it is possible there is a need to reduce the headcount. Or it could be that the bottom percentage of sales people were ditched. The hiring could be to keep pace with business demand: it's been a good year for Salesforce so far.
Those able to remain part of Benioff’s gang, at least those who are American citizens, can look forward to exercising their rights to suffrage come November. The CEO took time between tweeting about his “spiritual path” and general well-being to say [6]employees worldwide would be given time-off to vote in the forthcoming US elections. ®
Get our [7]Tech Resources
[1] https://twitter.com/Benioff/status/1306819210052427777
[2] https://www.theregister.com/2020/08/26/salesforce_staff_layoffs/
[3] https://www.theregister.com/2019/06/10/salesforce_shells_out_157bn_for_data_viz_biz_tableau/
[4] https://www.theregister.com/2020/04/01/salesforce_mega_founder_gets_spare/
[5] https://www.theregister.com/2020/08/26/salesforce_q2_2021/
[6] https://twitter.com/Benioff/status/1306869444111601664
[7] https://whitepapers.theregister.com/
Up and down and up and down and...
JaySeb
Too bad companies can't plan 3 months ahead. So the regular Joe always pays the bill... Sad management.
Reminds me of a cult.
In the UK the same old public school and ex EDS duffers have been hired at the top of SF UK, who implement their usual classist hiring policies, anyone with any remnant of a working class accent will be turned down or treated badly if they are forced to hire them.
Plenty of virtue signalling hires of ethnic minorities, females, and gays, and yet those who parents were white working class, no matter how educated or talented, get openly discriminated against in hiring, promotion, etc.
So they had a good idea for keep the CRM in the cloud, and after Oracle let Siebel go off the boil after buying it, they have been lucky. Its also very sticky to make it so hard for clients to get data back out if they tire of SF for any reason.
Perhaps the biggest indicator of their culture is the promise to all interviewees that they will pay travel expenses to the interview, but then they only follow through and pay out for people who are actually successful at interview. Again tends to act against anyone from a working class background.