Salesforce Inc. has announced that it will be cutting jobs at Own, the data management startup it acquired for $1.9 billion just a few months ago. The company revealed that certain roles will no longer be needed after the two companies are fully merged, with affected workers set to leave by January 31. Other positions will be transitional, lasting three to twelve months, to assist with the integration process.
This move signals a big shift in Salesforce’s approach to acquisitions. For years, the company grew rapidly by acquiring other businesses, including major deals like its $27.7 billion buyout of Slack in 2021. However, these large mergers came with their challenges – higher costs, more employees to manage, and a lot of complexity. In fact, Salesforce has been under pressure from investors to be more careful with its spending and acquisitions.
Now, with its latest acquisition, the company is adopting a more careful strategy. Own, which specializes in securing data across various software applications, brings 1,000 new employees to Salesforce. The goal of this deal is to enhance Salesforce’s Data Cloud, a service that helps companies manage and analyze data more effectively. While Own will help strengthen Salesforce’s product offerings, the company is also trimming down its workforce to ensure financial sustainability going forward.
This isn’t the first time Salesforce has reduced its workforce. Last year, the company laid off 10% of its employees as part of a plan to cut costs and focus on making smarter business decisions. This recent round of job cuts is part of that same strategy – streamlining operations after years of rapid expansion.
In a related move, Salesforce also revealed plans to hire over 1,000 employees to help develop its new generative AI product. So, while some jobs are being cut, the company is still investing in new technologies that it sees as crucial for future growth.
Although Salesforce has not provided many details about the layoffs or the integration process at Own, it’s clear that the company is trying to find a better balance between growth and sustainability. As it focuses more on strategic investments like AI, the tech world will be watching closely to see how these changes play out.
