Salesforce Buckles to Activist Pressure by Instituting Stringent New Regulations for Engineers and Salespeople

Salesforce Buckles to Activist Pressure by Instituting Stringent New Regulations for Engineers and Salespeople

As activist investors continue to exert pressure on Salesforce, the business is examining additional cost-cutting strategies. Insider reported today that the corporation is instituting more harsher performance measures for engineering, with some salesmen under pressure to resign or submit to their own strict performance criteria. This is consistent with what TechCrunch’s sources have stated.

This may involve performance evaluations based on the amount of code written by engineers, a poor method of measuring engineering productivity that promotes quantity over quality. While salesmen are forced to choose between signing a stringent one-month performance improvement plan or accepting a leave payment, they are caught between a rock and a hard place.

In response to this inquiry, Salesforce stated, “Our performance management methodology encourages responsibility and rewards excellence.” The corporation did not elaborate or respond to follow-up questions regarding the policy’s timing or specifics.

TechCrunch has also heard that the firm is forcing a return to the office, and according to a Salesforce representative, the decision is now up to the managers. Our hybrid solution enables executives to decide for their teams which tasks can be performed remotely or in-office.

Since the pandemic struck in 2020, the corporation has been promoting the concept of the “all-digital, work-from-anywhere office,” which they refer to as the Digital HQ. It’s a major reason why the CRM industry leader spent nearly $28 billion to acquire Slack in 2020.

But neither is it a surprise, as CEO and chair Marc Benioff almost foreshadowed this at the end of last year when he implied that those working from home were less productive.

All of this is likely attributable to the fact that activist investors, including as Elliott Management, Starboard Value, ValueAct, and Inclusive Capital, have been circling the firm, putting Benioff under enormous pressure to boost productivity and reduce expenses. These companies are a major factor in Salesforce’s January announcement that it would be laying off 10% of its personnel, a process that has been poorly handled, with layoff notices arriving in small increments, leaving employees worried and uncertain.

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