Salesforce trims workforce at newly acquired Own

Salesforce Inc., the global leader in customer relationship management software, is preparing to downsize the workforce of Own, a data management startup it recently acquired for approximately $2 billion. The decision, announced in an internal presentation to Own employees, highlights a shift in Salesforce's approach to managing acquisitions amid increasing scrutiny over its growth strategy.

Some roles within Own will be deemed unnecessary following what Salesforce has termed “post-harmonization” efforts, with affected employees set to leave by January 31, 2025. Other positions will transition to fixed short-term roles, lasting three to 12 months, to facilitate the integration process. The announcement comes just days after Own confirmed via LinkedIn that the acquisition had been finalized.

A Salesforce spokesperson declined to comment on the impending layoffs, which underscore a more calculated approach to mergers and acquisitions following years of rapid expansion.

The layoffs reflect Salesforce’s evolving acquisition philosophy as it seeks to balance innovation with operational efficiency. In recent years, major acquisitions, including Slack in 2021 and Tableau in 2019, significantly expanded Salesforce’s headcount and technical infrastructure but also brought higher operational costs and complexities.

Pressure from activist investors, which mounted in late 2022, pushed Salesforce to reevaluate its merger practices. In response, the company disbanded its mergers and acquisitions committee and implemented a 10% workforce reduction early in 2023. These measures marked a decisive pivot toward greater financial discipline and more selective acquisition strategies.

San Francisco-based Salesforce has stated its intent to adopt a more conservative approach to future deals. However, the purchase of Own, with its 1,000 employees, signals that the company still sees strategic acquisitions as critical to its growth — albeit under tighter operational controls.

The acquisition of Own is Salesforce’s largest since the Slack deal and is expected to bolster its Data Cloud offering, which helps businesses organize and analyze data across multiple applications. Own specializes in securing and managing data flows, making it a valuable addition to Salesforce’s suite of tools for enterprises navigating increasingly complex digital ecosystems.

Industry analysts believe the integration of Own’s capabilities will enhance Salesforce’s position in the competitive data management and analytics space. However, the workforce reductions indicate that Salesforce is being selective about which roles are essential for achieving these strategic goals.

While reducing its workforce at Own, Salesforce is simultaneously investing in emerging technologies. Earlier this month, the company announced plans to hire over 1,000 employees to support its new generative AI agent product. This dual strategy — streamlining operations in one area while expanding in another — reflects Salesforce’s focus on aligning resources with high-growth opportunities.

The layoffs at Own illustrate the challenges Salesforce faces as it works to balance innovation with fiscal responsibility. While the acquisition is poised to strengthen its core offerings, the downsizing raises questions about the broader human impact of corporate consolidation.

As Salesforce continues to navigate these complexities, its evolving approach to acquisitions will likely serve as a litmus test for how large tech companies manage growth in an era of heightened scrutiny and economic uncertainty.