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Tech company layoffs continue to tear the industry apart. Redfin and Salesforce downsized

The wave of layoffs in the tech industry continues.

Software company Salesforce cut hundreds of jobs this week, according to reports. The company confirmed the layoffs in an email.

“Our sales performance process drives accountability,” a Salesforce spokesperson said in a statement. “Unfortunately, this may lead some to leave the company, and we support them through their transition.”

Salesforce did not disclose how many workers were laid off or when the layoffs were implemented.

CNBC reported that the layoffs would have affected fewer than 1,000 people on Monday, representing a small fraction of the company’s workforce, citing an unnamed source.

Salesforce had 78,634 employees as of July 31.

Protocol first flagged the layoffs, saying the cuts could affect up to 2,500 workers “in a new challenge for activist investors and tough economic conditions.”

News of the layoffs came after reports last month that activist investor Starboard Value disclosed a stake in the company.

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Meta layoffs: Facebook parent company to lay off more than 11,000 employees

Redfin cuts 13% of its workforce

Online real estate brokerage Redfin, meanwhile, announced on Wednesday that it was laying off 862 employees, or about 13% of its workforce, and closing its iBuying house flipping business amid a slowing housing market.

The move follows another cut announced in June, when Redfin laid off around 470 employees, or around 6% of its workforce, after falling demand. The number of people working at the company has dropped 27% since April 30, according to a company blog post.

“The June layoff was a response to our expectation to sell fewer homes in 2022; this layoff assumes the downturn will last at least through 2023,” Redfin CEO Glenn Kelman said in an email to employees.

Layoffs sweep the tech industry

Salesforce and Redfin join several tech companies that recently announced layoffs and other cost-cutting measures, as employers brace for a possible recession next year.

Also on Wednesday, Facebook’s parent company Meta said it would lay off more than 11,000 employees, a 13% reduction, after dramatically increasing investment during the pandemic as e-commerce surged.

“Not only has e-commerce returned to earlier trends, but the macroeconomic slowdown, increased competition and loss of advertising signal has caused our revenue to decline from what I expected,” the CEO said. of Meta, Mark Zuckerberg, in a message to employees. “I was wrong, and I take responsibility for it.”

Facebook rival Twitter last week laid off about half of its workforce of more than 7,500 full-time employees shortly after billionaire Elon Musk acquired the platform. However, the company has reportedly asked dozens of workers to return, according to Bloomberg.

At the end of October, more than 52,000 tech workers in the United States were laid off this year, according to an analysis by Crunchbase.

This article originally appeared on USA TODAY: Redfin layoffs are just the latest job cuts in the tech industry