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Salesforce.com To Cut 200 Jobs Despite Its Expectations To Make More Money

Posted by ryuzaki0 on from the all-about-the-benjamins dept.

Dawn Kawamoto writes "Sometimes, making more money is not enough. Just ask Salesforce.com. The SaaS company announced it would cut 200 jobs, during its second quarter earnings call. The cuts are coming, despite the company raising its revenue forecast for its fiscal year. Salesforce.com says it's initiating the cuts to reduce overlapping roles and to (you guessed it) gain 'synergy', following its effort to meld its cloud marketing platform company ExactTarget with its social media market suite Marketing Cloud. And apparently this isn't the first time Salesforce has tried to squeeze out those nebulous 'synergies.' It reportedly cut 100 jobs in October, when it merged its social media platform companies Radian6 and Buddy Media."

3 of 156 comments (clear)

  1. Business tries to increase profits, new at 11 by Logger · · Score: 5, Insightful

    Given they are not a charity, I don't see the issue. Maybe they have 200 people just fetching coffee that they just realized don't really contribute to the company. Layoffs are often a way to gid rid of dead weight.

  2. Revenue is not the same as earnings by ugmoe · · Score: 5, Informative

    Revenue is not the same as earnings Full Year FY14 Guidance: Revenue for the company's full fiscal year 2014 is projected to be in the range of $4.000 billion to $4.025 billion, an increase of 31% to 32% year-over-year. GAAP net loss per share is expected to be in the range of ($0.44) to ($0.42) while diluted non-GAAP EPS is expected to be in the range of $0.32 to $0.34. The non-GAAP estimate excludes the effects of stock-based compensation expense, expected to be approximately $511 million, amortization of purchased intangibles related to acquisitions, expected to be approximately $146 million, and net non-cash interest expense related to the convertible senior notes, expected to be approximately $47 million.

  3. Aquisitions by SpaceMonkies · · Score: 5, Insightful

    Look at their aquisitions:

    Sendia (April 2006)[8] – now Force.com Mobile
    Kieden (August 2006)[9] – now Salesforce for Google AdWords
    Kenlet (January 2007) – original product CrispyNews used at Salesforce IdeaExchange[10] and Dell IdeaStorm[11] – now relaunched as Salesforce Ideas
    Koral (March 2007) – now Salesforce Content
    Instranet (August 2008) – now re-branded to Salesforce Knowledge
    GroupSwim (December 2009) – now part of Salesforce Chatter
    Informavores (December 2009)[12] – now re-branded to Visual Workflow
    Jigsaw Data Corp. (April 2010),[13] – now known as Data.com
    Sitemasher (June 2010) – now known as Site.com
    Navajo Security (August 2011)[14]
    Activa Live Chat (September 2010) – now known as Salesforce Live Agent[15]
    Heroku (December 2010)[16]
    Etacts (December 2010)[17]
    Dimdim (January 2011)[18]
    Manymoon (February 2011) – now known as Do.com[3]
    Radian6 (March 2011)[19]
    Assistly (September 21, 2011) – now known as Desk.com[20]
    Model Metrics (November 2011)[21]
    Rypple (December 2011)[22] – now known as Work.com
    Stypi (May 2012)[23]
    Buddy Media (May 2012) for US$689 million[24][25]
    ChoicePass (June 2012)[26]
    Thinkfuse (June 2012)[27]
    BlueTail (July 2012) – now part of Data.com[28]
    GoInstant (July 2012) for US$70 million [29]
    clipboard.com (May 2013) for US$12 million [30]
    ExactTarget (announced June 4, 2013) for US$2.5 billion[31]
    EdgeSpring (June 7, 2013)[32]
    -- http://en.wikipedia.org/wiki/Salesforce.com#Acquisitions

    I can see why they need to 'reduce overlapping roles'!

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