Salesforce has announced that it will cut approximately 10% of its workforce, which equates to more than 7,000 employees, and will also close offices in certain markets.

CEO Marc Benioff attributed the move to the challenging economic environment and a more cautious approach being taken by customers in their purchasing decisions.

Benioff acknowledged that the company had hired too many employees during the pandemic, with its workforce having grown by 30% to 79,000 in February 2021. Those impacted in the U.S. will receive a minimum of almost five months of pay, as well as health insurance and other benefits to assist in their transition.

Salesforce estimates that the restructuring will cost between $1.4 billion and $2.1 billion, which it expects to incur in Q4 of fiscal 2023. The company's market value has fallen to around $134 billion, down from a peak of more than $300 billion in late 2021. The company also refused to provide a revenue forecast for 2023 at its most recent earnings report last year.