Salesforce Streamlines Its Business With 1,000 Layoffs
Salesforce (NYSE: CRM) recently confirmed it would lay off about 1,000 employees, or nearly 2% of its workforce, just days after it dazzled investors with record growth in its second quarter.
The decision might seem baffling, since the cloud services company's adjusted operating margin hit a record high last quarter, its quarterly revenue exceeded $5 billion for the first time, and it raised its revenue, operating cash flow, and adjusted earnings guidance for the full year.
Salesforce's management also didn't mention layoffs during its conference call, and only confirmed them after some internal notifications were leaked to the Wall Street Journal. Does that sequence of events suggest trouble is brewing beneath the surface?
Source Fool.com
