By Kuldip K. Ambastha
On Wednesday, August 26, 2020, the stock of Salesforce.com, Inc. (CRM) had a pop of 26.0%. The stock posted smaller positive and negative returns during other days of the trading week. Strong 2Q2020 results drove the 26.0% gain in one day. For the first time, in 2Q2020 Salesforce.com, Inc. had more than $5 billion in quarterly revenues. Despite the strong showing in 2Q2020, the company also will be undergoing significant changes in terms of layoffs. Salesforce.com, Inc. will soon be added into the Dow Jones Industrial Average, but still about 1,000 jobs will be eliminated
Employees impacted by this change will be given 60 days to find new roles within Salesforce.com, Inc. Leaders of the company have said that this plan is needed in order to drive continued growth and customer success in the future. Earlier in 2020, the company had stated that for 90 days there would not be significant layoffs. However, that 90-day period has now passed. Affected employees will be offered re-skilling, re-training, and placement services, though still it is likely going to be difficult for these individuals to find new jobs during these coronavirus pandemic-affected times.
Keywords – Salesforce.com, Inc., Salesforce.com, Salesforce, CRM, Marc Benioff, cloud computing, cloud technology, software as a service, SaaS, customer relationship management, client relationship management, COVID-19, coronavirus, pandemic, layoffs, firings, terminations.
Disclosure – The principals of Ambastha Financial LLC have a short option position in CRM. The clients of Ambastha Financial LLC do not have any positions in CRM.
Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2020 – Ambastha Financial LLC.