Salesforce Layoffs

I read an interesting LI post today where someone was saying instead of laying off 8% of their workforce, Salesforce should have instead asked everyone else to take a pay cut or voluntarily leave.... Um, what?


Their point was that instead of laying off 8000 people to get their payroll spend in check, they should have instead invested in their culture and rallied everyone together. To me this makes no sense...

1) Layoffs allow you to prioritize keeping top performers happy while getting spend in check, asking the top performers to take a pay cut to throw a life raft to the under performers will just result in your best reps going elsewhere..


2) Its clear Salesforce over hired, so keeping all 8000 people just leaves you with inflated teams with not enough business to keep everyone busy... So now you're asking people to voluntarily take less base, in order to keep more reps around and thus have diluted territories (less earning potential) and the logic is that that will boost moral? Crazy.


What are your thoughts, am I crazy to think that post made absolutely no sense..?

☁️ Software Tech
20
CadenceCombat
Tycoon
7
Account Executive
Yeah, stupid suggestion on all fronts regardling voluntary pay cuts. Pretty delusional to think this is a viable strategy which may speak to why this person got laid off in the first place.
Armageddon
Valued Contributor
1
Account Executive
lol, for sure. To be clear this person wasn't associated with Salesforce. Just a keyboard warrior screaming into the LI echo chamber
butwhy
Politicker
4
Solutions Engineer
I saw that post - it was idiotic to me in terms of business logic. I have lots of friends there, many laid off that I am trying to help find new jobs, they have told me that the grievances Slack channel internally is full of insane ranting and rebellion against Marc. But come on: Marc has been an egomaniac for decades, everyone freaking knows this; Lightning was a disaster and a half that they haven't been able to shake off; they had a crap ton of extra headcount due to four HUGE acquisitions in a relatively short period of time; and their core sales team can't demo their way out of a paper bag. Anyone who joined this company in the last couple years knew one of all of these things and rolled the dice. This layoff was necessary for them even before the head winds. This is what happens in the big leagues and five months severance is incredibly generous.
Armageddon
Valued Contributor
0
Account Executive
THIS. You are spot on with this analysis @butwhy
punishedlad
Politicker
2
Field Sales
lmao what an insane take

You are not obliged a job from your employer. Yes, it's shitty that Salesforce over-hired and the leadership responsible is dimwitted.
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
I guess you could ask those fired if they'd rather have their job with a pay cut or be looking for a new job. I'm sure most of them would have taken the pay cut. Some would have rage-quit, but most would take the cut if they knew being let go was the alternative.

That said, they would have taken the cut and then start a paid job search.
Armageddon
Valued Contributor
1
Account Executive
Oh for sure, the people laid off would have taken the cut no doubt. Its the impact that it would have had on the broader company that I think would have been detrimental. I think he proposed something like 12-25% cut for Execs, 8-12% for Directors, 5-8% for managers and 2-5% for everyone else...
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
If done right, like “ we’re all in this together” than it might work. But lots of people wouldn’t have walked when faced with a pay cut.
GingerBarbarian
Opinionated
1
Lead Sales
Salesforce did not overhire, they over-bought. They spent a bunch of money buying other tech companies that have questionable balance sheets for inflated prices. Just look at how they are handling Slack, Mulesoft, Tableau, etc. They spent billiions buying companies to fake growth to shareholders. It is the same strategy that made GE collapse in the early 2000s. Eventually they got so big they could not simply acquire companies fast enough to mirror Wall Street analysts.
PhlipOut
Politicker
0
Account Executive
they honestly messed those companies up a bit too.
so many OGs left Tableau for example because SFDC ruined the culture and work practices.

also wtf are they doing with these acquisitions? no product integrations, so might as well run them as separate companies
Diablo
Politicker
1
Sr. AE
It’s all number game to keep the investors and share holders happy
Gasty
Celebrated Contributor
1
Community Manager [War Room]
The pay-cut discussion should only be limited to the C-suite in my opinion. Doesn't make any sense for the entire firm to take pay-cuts.
<TLDR> you aren't crazy (yet!)
ChickenWings
Opinionated
0
Tom Callahan's Son
Isn’t this fairly common with large equity holders?

If I had a fat stack to vest in a couple years, I’d be motivated to cut salary to keep the company afloat
ThatNewAE
Politicker
1
Account Executive - Mid enterprise
Isn't this true for any and every company that laid off?
Pay cut as opposed to laying off.
Overhiring and overpromising.
No growth for the past few quarters.
"Due to macro-economy". bullshit that they gave.
DungeonsNDemos
Big Shot
1
Rolling 20's all day
This happened to me at my company when Covid started. Looking back it was probably illegal, but nothing worth pursuing as I didn't stick around there long.
I agree, it's a sympathetic thought with no real business sense behind it.
finboi
Notorious Answer
1
Fi-nance
Agreed. The thing is in corp finance there are SO many levers to pull. Reducing everyone’s pay isn’t really an option tho since you would end up losing too talent while keeping low performers.

That said, these massive, “unexpected”, layoffs show poor management. Can’t you better smooth this out? Like for Salesforce doing 8k at once feels like they had poor forecasting and weak performance management going into the year.
Rajan
Politicker
1
Senior Account Executive
I understand the sentiment of your post but I disagree with the assumption that all of those laid off were low performers.
JDialz
Politicker
1
COO
Good point. Today I saw posts from people at Amazon and Google saying their entire team/dept were terminated. Goldman, MS, BNYM, and CS are axing entire floors.
losangelessadness
Opinionated
1
Inbound AE / SDR Manager
We live in a capitalist society - agreed dumb suggestion. Especially at a company where its all about sales lol
JDialz
Politicker
1
COO
Never starve the eagles to feed the turkeys! A public company’s board and executive leadership have a fiduciary obligation to act in the best interest of shareholders, not employees.

We’re helping quite a few ex-CRM folks with transitioning benefits though, so we have been very busy!
Sunbunny31
Politicker
0
Sr Sales Executive
You're not crazy. Companies are not visionary Utopias.

Out of curiosity, was this post written by someone in an executive role, or lower? I'm trying to get my head around the thinking, and it just seems very idealistic rather than realistic.
Armageddon
Valued Contributor
0
Account Executive
I'll try to find it again and post here
Armageddon
Valued Contributor
0
Account Executive
Cant find it, someone in my network reacted to it I think.. If I remember correctly, it was an executive for a small company probably someone just looking for attention. If I find it again I'll post it here, but it was pretty laughable
7

Salesforce

Advice
27
3

Salesforce Down?

Question
7
1

Salesforce Outage

Discussion
10