Chief Operating Officer Brian Millham said that the company continues to focus on improving profitability while the company continues to focus on improving profitability.
Millham said that if we feel like it needs to change and reshape, we're going to make those moves to drive the efficiencies. He said that the consultant, Bain Co., which Salesforce is working with to review the business, has yet to provide final recommendations.
After years of hiring and big acquisitions, the software company is focused on profitability. In January, Salesforce announced it would eliminate 10% of its workforce, or about 8,000 employees, its largest-ever headcount reduction, and close offices across the US. A group of activist investors who have taken stakes in the company are trying to cut costs further in order to increase earnings and improve profit margins.
If it wiped out more jobs, Salesforce wouldn't be alone in the industry. More than 21,000 workers were cut in recent weeks by Meta Platforms Inc. and Twilio Inc.
Millham, who joined the company in 1999 as its 13th employee and was promoted to chief operating officer last year, said he focuses on making the sales and go-to market divisions more efficient and finding new selling opportunities, such as the company's recently announced AI products. He has taken over some of the operational and customer-facing duties previously held by Co-Chief Executive Officer Bret Taylor before that executive left the company earlier this year, including appearances on earnings calls.
Millham said the company, which makes customer relations management software, has been looking at measures including reducing the number of salespeople assigned to each deal, utilizing third-party sellers and emphasizing productivity, such as monthly sales targets, as well as reducing the number of salespeople assigned to each deal. Salesforce is urging employees to go into office more often, even though it hasn't imposed a return-to office mandate. Attendance at company sites has gone up in the past few months, he said.
Millham said that this was a performance-oriented culture from the very beginning. During the pandemic, we may have drifted a bit as we took care of our employees and made sure everyone was healthy. He said that he wants Salesforce to have a performance and wellness culture.
The stock has jumped 43% this year, closing in New York on Friday at $190.06, making up nearly all of its value after a 48% plunge in 2022.
Investors rejoiced earlier this month when the company said it would reach margin targets years earlier than anticipated. Millham said that we feel pretty good about what we have been able to deliver so far, before saying that it is not a job that s not done by any stretch. None of the ChatGPT Advances Are Moving So fast Regulators Can't Keep Up With It.