Safeforce layoffs – beginning or the end?
Salesforce announced approximately 1,000 employees will be laid off. That’s +/-1.3% Not much if you are still employed. But is this the end?
Net income, revenue and employee count from 2011 to 2021 have proven Salesforce is truly a well run company. As the company grew, changes in leadership improved consistently.
Iykyk: The big thinkers are leaving. Starting in 2017, systems thinkers and holistic thinkers started to bail. Slight bump down on results thinkers to near flat in 2017 to date. But hey, did it matter immediately? Not really, the bump up in opportunistic thinking began to impact sales a few years later. Disciplined and Expert thinkers rate of change are steady.
My concern: rates of growth crossed mindset hiring growth in 2021. So, the problem is recent and will not likely playout for 12 to 24 months. Current price is $142 (Nov 9, 2022) and analyst consensus suggest a (strong) buy. with mean 12 month price of $221 for one site. To accomplish this goal they need to focus on a likely short term path and get Results and Opportunist back in the saddle. Systems and Holistic are not going to contribute to short term growth but can solve complex relationships to companies and people (think Steve Jobs, iPhone, iTunes, etc). That will help beyond the rough patch we are likely to see in 2023.
It seems like a time for adjustment at Salesforce. ref: yahoofinance https://finance.yahoo.com/research/stock-forecast/CRM/