2024-01-10 14:56:14 ET
Shares of Salesforce Inc (NYSE: CRM) are in the green on Wednesday following a report that the cloud company has implemented a hiring freeze.
Why did Salesforce freeze hiring?
A leaked memo from Ross Harmes – the chief of staff at Salesforce suggests the Nasdaq-listed firm and its team communication platform (Slack) has paused hiring for tech and product roles.
The message did not, however, reveal a reason for the hiring freeze or when is it expected to end. All it said was that the pause will be lifted “based on how the umbers are looking each quarter”.
The news arrives more than a month after Salesforce reported market-beating results for its third financial quarter and issued in-line guidance for the future ( read more ).
Salesforce stock has gained over 35% in less than three months.
Watch here: https://www.youtube.com/embed/cx13vfxOxMI?feature=oembedIs it worth investing in Salesforce stock?
Harmes also asked managers in his memo to adjust workloads as they will now be working with fewer people. His message also reads:
This isn’t our first rodeo with hiring pauses, but it’s definitely disruptive and will affect our plans in Q1 and beyond. We’ll maintain the list of open roles, and continue to add to it when people leave.
Note that Salesforce had announced plans of hiring more than 3,000 new employees primarily in its artificial intelligence division in September.
Executives believe nearly half of the skills that exist in today’s workforce won’t be relevant just two years from now, thanks to artificial intelligence, per Forbes.
— unusual_whales (@unusual_whales) January 10, 2024
Last month, Morgan Stanley upgraded to “overweight” and raised its price target to $350 which suggests about a 35% upside from here.
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