Salesforce could be set to cut even more jobs
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A leaked document claims that Salesforce could cut even more jobs as it pursues higher margins.
Seen by Business Insider (opens in new tab)the document known as “Vision, Values, Methods, Obstacles, and Measurements” (V2MOM) is released every year and is usually shared internally to give the CRM giant’s employees an indication of the company’s direction in the coming months .
This year, it seems the direction is to significantly increase profit margins, likely resulting in more mass layoffs following the layoffs of 10% of the company’s workforce.
Salesforce layoffs
It’s estimated that about half of the company’s account executives bring in more than 95% of all sales, and in an effort to reduce unnecessary spending as it moves toward higher margins, Salesforce may be trying to get rid of some of its most unproductive employees.
The company’s target for fiscal year 2023 for operating margins was 20%, which has been adjusted to 25% in fiscal year 2026. According to Business Insider, activist investor Starboard Value appears to be the one to achieve a margin of more than 31.7%. %, and that in the next two years.
All this in an effort to catch up with better performing companies such as Oracle (43.3% margin) and Microsoft (46.6% margin).
An excerpt from the V2MOM concept reads: “Our margin growth is more important than revenue growth…”
That same document also reportedly asked managers to cut the “worst performers” by 5% per year as the company steers toward a more aggressive, performance-oriented set-up. This figure is believed to have since been removed, with managers instead being asked to rate employees, reward top performers and cut low performers, to ensure the company’s “prosperous” future.
Benioff allegedly told employees of the company’s Slack channel that even this has been removed from the V2MOM, but it’s clear the company has hard targets for a financial reform.