Salesforce closes Fiscal Year on a high after an eventful year
It has been a rollercoaster ride for CRM giant Salesforce during the fiscal year. It was marred by a series of unexpected events and an unusual degree of uncertainty. However, the year ends on a positive note for the company as its financial health appears robust with a 96% surge in its stock price year-to-date, defying expectations earlier in the year.
The tumultuous ride began with the abrupt departure of co-CEO Bret Taylor, followed closely by Slack’s CEO and co-founder Stewart Butterfield. The exit of two key leaders within a week was just the start of the challenges that Salesforce would face in the following months.
Adding to the company’s woes was the presence of activist investors, including Elliott Management, Starboard Value, ValueAct Capital, Inclusive Capital, and Third Point. Their arrival signaled underlying issues that needed immediate resolution. This was evidenced by Salesforce appointing three new board members, including an activist from ValueAct, as well as laying off 7,000 employees, accounting for 10% of its workforce.
The company’s handling of these layoffs raised concerns, with reports of engineers being pressured and the reversal of its remote work policy, a significant shift from its “Digital HQ” approach during the pandemic. This marked a decline in the company’s reputation as a progressive and employee-friendly organization.
Salesforce’s troubles were not confined to leadership upheaval and investor pressures but extended to fundamental shifts in its corporate culture, leading to widespread discontent and dissatisfaction among employees. These crises were exacerbated by the perception that Salesforce was deviating from its vision and values.
Despite the trials and tribulations, Salesforce was able to pivot and end the year on a financially positive note. Such a turnaround was an unlikely outcome earlier in the year. However, it was not without its casualties as the company witnessed the erosion of its once progressive and employee-centric work culture. Nonetheless, the year ended with hope and the promise of stability, breeding optimism for what lies ahead in the new fiscal year.
