As the new year commences, numerous companies are strategising their hiring plans. While some are delaying their hiring processes, others are gearing up to expand their workforce. Recent reports indicated that Salesforce and Slack were implementing a hiring freeze, referencing a leaked memo.
Contrary to these reports, the company has denied such allegations, asserting that they are not implementing a hiring freeze in any of their departments. The company clarified that it is actively engaged in "continuing strategic hiring" to address business needs.
"We are not freezing hiring in any departments. We have made rapid progress on our hiring goals in technology and product to support strategic growth areas like AI," said a Salesforce spokesperson, adding that Salesforce is now "continuing strategic hiring" to meet its business needs, reported Business Insider.
What did the leaked memo say?
According to previous media reports, Salesforce and Slack temporarily halted hiring in their technology and product divisions.
"Headcount that you currently have isn't going away, it's just being delayed. We'll maintain the list of open roles, and continue to add to it when people leave. Remember, we won't ask you to do the same amount of work with fewer people, so adjust plans accordingly. Any decision to hire more staff would be based on how the numbers are looking each quarter. I would assume at least a quarter," reportedly Harmes said in the leaked memo.
Staff at Salesforce and Slack have undergone a period of uncertainty in the past year. Salesforce has oscillated between axing staff, and then hiring new talent aggressively. In January 2023, Salesforce CEO Marc Benioff implemented a workforce reduction, affecting approximately 10% of the company's employees.
In an email to staff at that time, Benioff acknowledged, "As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we're now facing, and I take responsibility for that."
Contrastingly, by September, the company shifted gears, revealing plans to onboard over 3,000 new employees. Benioff explained to Bloomberg that this hiring initiative aimed to "grow the company and to continue to achieve great margins."
While some tech companies are adopting cost-cutting measures, several organisations like Google, Amazon, Unity and others are contemplating a significant staff reduction.