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Salesforce employee reduction: Will namesake tower keep its name?

INDIANAPOLIS (WISH) — There are about 2,300 people that work for Salesforce in Indianapolis, the company has announced they are reducing their workforce by 10%.

One of the reasons is they hired too many people, according to Salesforce Chair and CO-CEO Marc Benioff.

“Salesforce here in Indianapolis has been an incredible community partner, engaged in the work we do and involved in the downtown,” Bob Schultz of Downtown Indy Inc. said. 

Cutting the workforce at Salesforce comes with a cost. In a filing to the securities and exchange commission the company expects to take up to 2 billion dollars losses this year. Much of it going to severance packages and costs associated with office space reductions.

I-Team 8 reached out to the company, they would not say how many people in Indianapolis might lose their jobs — they are required to give that number to the state in an official notice. 

No notice had been posted online Wednesday afternoon. There is also concern about the future of Salesforce tower in downtown Indianapolis. 

The Salesforce announcement says the company plans office space reductions in some cities, and getting out of other real estate all together. The company did not list specific locations it’s targeting. 

Those reductions are expected to be wrapped up over the next three years. 

Benioff sent a letter to all employees subject titled Important Company Update.

Letter to employees

“As one ‘Ohana, over the last 23 years, Salesforce has built the #1 CRM that drives incredible customer success across every line of business for every industry around the world. We have never been more mission-critical to our customers. We have an unparalleled ecosystem, with thousands of partners and millions of Trailblazers building their companies on our platform.

“However, the environment remains challenging and our customers are taking a more measured approach to their purchasing decisions. With this in mind, we’ve made the very difficult decision to reduce our workforce by about 10 percent, mostly over the coming weeks.

“I’ve been thinking a lot about how we came to this moment. 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.

“Within the next hour, employees who are initially affected by this decision will receive an email letting them know. Our leadership will reach out directly to these employees, and provide clarity for their teams about changes within their organizations.

“For those who will be leaving Salesforce, our priority is to fully support them, including by offering a generous package. In the U.S., affected employees will receive a minimum of nearly five months of pay, health insurance, career resources, and other benefits to help with their transition. Those outside the U.S. will receive a similar level of support, and our local processes will align with employment laws in each country.

“The employees being affected aren’t just colleagues. They’re friends. They’re family. Please reach out to them. Offer the compassion and love they and their families deserve and need now more than ever. And most of all, please lean on your leadership, including me, as we work through this difficult time together.

“I’m grateful for every single one of you who has contributed to our continued success as a company, and the hard work and sacrifices you have made to generate success for our hundreds of thousands of customers. You’ve built our company — for all of our stakeholders — and you’ve shown incredible resilience every step of the way.”

Marc Benioff