A leaked document claimed that Salesforce could cut even more jobs as it chased higher margins.
Seen by Business informant (opens in a new tab)a document known as “Vision, Values, Methods, Obstacles and Measurements” (V2MOM) comes out every year and is usually shared internally to give employees at the CRM giant a clue as to where the company will go in the coming months.
This year, it seems that its direction will be a significant increase in margins, which will probably translate into further mass layoffs after laying off 10% of the company’s staff.
It is estimated that approximately half of a company’s account directors account for more than 95% of all sales, and in order to reduce unnecessary expenses as sales margin increases, Salesforce may want to get rid of some of its most unproductive employees.
The company’s operating margin target for fiscal year 2023 was 20%, and by fiscal year 2026 it was revised to 25%. and within the next two years.
All this to catch up with better performing companies such as Oracle (43.3% margin) and Microsoft (46.6% margin).
An excerpt from the V2MOM project reads: “Our margin growth is more important than revenue growth…”
The same document also reportedly asked managers to reduce the number of “worst performers” by 5% per year as the company moves towards a more aggressive, performance-oriented setup. This figure is believed to have since been removed, instead managers were asked to give staff a rating, rewarding the best and cutting out those underperforming to ensure the company had a “thriving” future.
Benioff is said to have told Slack’s channel staffers that even that has been removed from V2MOM, but it’s clear the company has strict financial reform goals.