Salesforce, an integrated solution provider, announced that it has laid off 90 temporary recruiting contractors and that its departments will not be hiring for FY2023.  

It is believed that the decision to lay off staff was prompted by Salesforce's latest downgrade to its revenue guidance for FY2023 to USD 30.9 billion–USD 31.0 billion from USD 31.7 billion–USD 31.8 billion, this was the second downward revision for this year. At a segmental level, the company reported a YoY increase in revenue and robust subscriber growth for Slack (acquired in December 2020), Sales Cloud, and Service Cloud solutions, however, it reported a decline in Commerce Cloud and Marketing Cloud products in Q2 2022. 

The company also reported that limited-term employment will continue, however, the majority of Salesforce teams have achieved their recruitment goals for the year. The company currently has more than 73,000 employees. 

Analyst QuickTake: Salesforce is one of the first technology startups to take on cost reduction measures in an effort to curb the negative impacts of a potential global economic downturn. Similar measures have been implemented at other sales and marketing firms such as Oracle, Twilio , and 6sense.