Salesforce reported one of its strongest quarters ever in Q2 despite the pandemic, but is still cutting jobs, according to a report in The Wall Street Journal.
Four things to know:
1. Salesforce reported 29 percent year over year revenue growth, hitting $5.15 billion for the second quarter. The company updated its revenue guidance for the third quarter, expecting to hit $5.24 billion which would mean a 16 percent annual growth.
2. The company's subscription report revenues were also up 29 percent, hitting $4.84 billion, and professional services revenue was up 23 percent to $310 million. "As the data points around accelerating digital transformation continue to pile up, there are few better positioned to help with customer-facing efforts than Salesforce," Canaccord Genuity analyst David Hynes Jr. wrote in a note reported by WSJ.
3. During the pandemic, CEO Marc Benioff pledged not to conduct significant layoffs for 90 days. However, the company told The Wall Street Journal that it's reallocating resources, which includes eliminating some positions.
4. About 1,000 Salesforce employees are affected by the plan, which includes cutting jobs or redirecting employees to strategic growth areas. Some employees have been notified their job will be eliminated and were asked to find new roles within the company within 60 days.