Salesforce Slashes 300 Jobs, Emphasizes Cost Control Amid Tech Slowdown: Report
Portfolio Pulse from Lekha Gupta
Salesforce, Inc. (NYSE:CRM) has cut around 300 jobs to streamline operations amid a tech industry slowdown. This follows previous layoffs in January 2024 and 2023. Other tech companies like Intuit Inc. (NASDAQ:INTU), UiPath Inc. (NYSE:PATH), and Microsoft Corp. (NASDAQ:MSFT) have also announced layoffs. Salesforce stock has gained over 10% in the last 12 months, and investors can gain exposure via Vanguard S&P 500 ETF (NYSE:VOO) and Vanguard Total Stock Market ETF (NYSE:VTI).
July 16, 2024 | 10:23 am
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NEUTRAL IMPACT
Salesforce has cut around 300 jobs to streamline operations amid a tech industry slowdown. This follows previous layoffs in January 2024 and 2023. The stock has gained over 10% in the last 12 months.
The job cuts are part of ongoing cost control measures in the tech industry. While this may raise concerns about growth, the stock has performed well over the past year, suggesting investor confidence remains strong.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Microsoft Corp. has carried out another round of layoffs affecting various teams and regions.
While layoffs are generally negative, Microsoft's diversified business and strong market position may mitigate the impact on its stock price.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to Salesforce stock via Vanguard S&P 500 ETF (NYSE:VOO).
VOO provides diversified exposure to the S&P 500, including Salesforce. The impact of Salesforce's job cuts on VOO is likely minimal due to its diversified holdings.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 30
NEUTRAL IMPACT
Investors can gain exposure to Salesforce stock via Vanguard Total Stock Market ETF (NYSE:VTI).
VTI provides diversified exposure to the total stock market, including Salesforce. The impact of Salesforce's job cuts on VTI is likely minimal due to its diversified holdings.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 30
NEGATIVE IMPACT
Intuit Inc. has laid off about 1,800 employees and closed its Boise and Edmonton sites as part of cost control measures.
The significant layoffs and site closures indicate substantial cost-cutting measures, which could negatively impact short-term stock performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
UiPath Inc. has announced restructuring actions, including a 10% workforce reduction, to manage operating expenses.
The restructuring and workforce reduction are likely to be seen as negative by investors, potentially impacting the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60