Salesforce to cut 1,000 jobs
Salesforce announced on Wednesday it is cutting roughly 1,000 jobs, though it said it continues to hire for some growth areas.
Why it matters: The move comes just a day after the company announced blowout earnings and raised its guidance, sending shares up 26% on Wednesday. Salesforce had also pledged in March not to lay off employees for at least 90 days, but that was five months ago.
Between the lines: If even tech companies that are doing well are pruning their ranks, these cuts could portend widespread job losses in the coming months, with steeper losses at those companies whose business has been more directly hit by the pandemic.
What they're saying: "We're reallocating resources to position the company for continued growth. This includes continuing to hire and redirecting some employees to fuel our strategic areas, and eliminating some positions that no longer map to our business priorities," a Salesforce statement said.