Salesforce Plans a 10% Workforce Cut

Salesforce, Inc. (NYSE:CRM) shares rose more than 3% yesterday after the company announced a restructuring plan to reduce operating costs, improve operating margins, and continue the company's commitment to profitable growth with a softer macro in the cloud landscape.

The plan includes a reduction in the current workforce by approximately 10% with select real estate exit and office space reductions within certain markets to strengthen its capital structure to withstand an oncoming Category 5 macro storm.

The company expects to be liable for approximately $1.4 billion to $2.1 billion for the plan, with $800.0 million to $1.0 billion of liabilities to be paid down in Q4/23.

The employee restructuring is expected to be substantially complete by the end of the fiscal year 2024, while the real estate restructuring is expected to be fully complete by the fiscal year 2026.