Salesforce Inc CRM shares are trading higher Wednesday following reports the company will lay off approximately 10% of its workforce.
What Happened: Salesforce plans to cut about 10% of employees and close down select offices in order to help manage costs, per Reuters.
The report indicates that Salesforce expects the restructuring to lead to charges between $1.4 billion and $2.1 billion. $800 million to $1 billion of said charges will be realized in the fourth quarter of fiscal 2023.
"The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions," co-CEO Marc Benioff reportedly wrote in a letter to employees.
"As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we're now facing, and I take responsibility for that," Benioff added.
Related Link: 10 Information Technology Stocks Whale Activity
Salesforce provides enterprise cloud computing solutions and customer relationship management technology that brings companies and customers together.
Related Link: Salesforce has a 52-week high of $256.87 and a 52-week low of $126.34.
The stock was up 3.71% at $139.78 at time of publication, according to Benzinga Pro.
Photo: courtesy of Salesforce.
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