2 min

The CRM giant is implementing strict new policies for employees across the board.

Salesforce is reacting to pressure from activist investors by cutting costs, according to an article on TechCrunch. For starters, the company is implementing much stricter performance measurements for engineering. In addition, some salespeople are pressured to quit or else be put under their own harsh performance policies.

The moves comes in response to pressure from activist investors Starboard Value and Elliott Management. Just this past week, activist investor Third Point also took a stake in the San Francisco based CRM vendor. These firms have reputations for making aggressive demands in terms of profitability, and cost cutting is usually the first step on the road to an enhanced bottom line.

Employees are given tough choices to make

For engineers, the new measures could include performance reviews based on the quantity of code produced. This, however, is a flawed way to measure engineering productivity, as it will obviously encourage “quantity over quality”.

Salespeople, for their part, are being put between a rock and a hard place. According to the report, they are being asked to choose between signing a draconian one-month “performance improvement plan” or accepting an exit package.

When asked about this, Salesforce said: “Our performance management process drives accountability and rewards excellence.” The company did not elaborate or answer follow-up questions regarding the timing or details of this policy.

These latest measures come after Salesforce had already started making cuts. In January, CEO Marc Benioff announced that the company was laying off 10% of the workforce.

Changes to the “workplace”

There are also rumours circulating that the company is going to force workers to return to the office. A Salesforce spokesperson, however, told TechCrunch that it is up to the managers to decide.

“Our hybrid approach empowers leaders to make decisions for their teams about which jobs need to be in the office or remote”, the spokesperson said.

Also read: Do you build your Digital HQ with Slack, Zoom, Teams or Webex?