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The cloud-based software company’s actions follow that of IT consulting firm Accenture (NYSE:ACN), which last month warned about slowdown in its consulting business as clients were postponing business improvement projects, especially in retail.
“The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions,” Co-Chief Executive Officer Marc Benioff said 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.”
Salesforce (NYSE:CRM) expects to incur about $1.4 billion to $2.1 billion in charges, of which about $800 million to $1 billion will be recorded in the fourth quarter of fiscal 2023.
Shares of Salesforce, which rose 2% before the bell on Wednesday, nearly halved in value last year amid a broad selloff in tech stocks sparked by rising interest rates and fears of a possible U.S. recession.
