Salesforce Embarks on Hiring Spree, Adding 3,300 New Faces to Drive Growth

Benzinga · 09/15/2023 11:51

Salesforce Inc (NYSE:CRM) is embarking on a significant hiring spree to bring approximately 3,300 new employees across various departments. This move comes as a notable investment effort following the company's earlier decision to reduce its workforce by 10% as part of a restructuring plan earlier this year.

During an interview at the annual conference in San Francisco, Salesforce's CEO, Marc Benioff, expressed the company's commitment to growth and achieving solid margins. 

Benioff emphasized hiring thousands of new employees to achieve these goals, Bloomberg reports.

The incoming workforce will be evenly distributed across different segments, focusing significantly on sales, engineering, and developing the company's data cloud product. 

COO Brian Millham highlighted the success of specific business areas and the company's desire for a substantial boost in these domains.

Salesforce is placing a strategic bet on the growing interest in artificial intelligence (AI), anticipating it will drive fresh investments, particularly in its data cloud product. 

This product assists customers in effectively organizing and managing data from various sources. Salesforce recently announced that its existing clients would have free access to some capacity of the data cloud.

These new hires will partially restore the workforce trimmed earlier in the year when Salesforce decided to eliminate 8,000 jobs as part of a profitability enhancement strategy. 

Salesforce's Tableau unit was hit harder than other units in the company's record downsizing drive. 

The company's current workforce count stands at 70,456 as of the end of July. Microsoft Corp (NASDAQ: MSFT) also revealed plans for additional job cuts beyond the 10,000 announced earlier in the year.

Remarkably, many of Salesforce's new hires will include "boomerangs," referring to individuals who previously worked at Salesforce and then moved to other companies. 

Marc Benioff sees attracting such talent as a success metric for the company, and he has already brought back senior employees from companies like Snowflake Inc (NYSE: SNOW) and Twilio Inc (NYSE: TWLO).

During Salesforce's recent annual conference, Benioff even hosted an "alumni event" to encourage former employees from other organizations to return to Salesforce.

Price Action: CRM shares traded higher by 0.47% at $219.80 premarket on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.