Seema Shah · January 2023
MMM: Salesforce Cut Headcount by 10%
Salesforce has cut its headcount by 10% due to over-hiring during the pandemic and a slowdown in enterprise spending, which could worsen in a recession. Sensor Tower estimates show that worldwide installs of Salesforce's apps, including Slack, were down 20% YoY in Q4 2022. Slack and Salesforce mobile app installs were down 25% and 10% YoY, respectively. Slack is experiencing weakness in some of its largest international markets, with installs down in The Philippines, Germany, India, Japan, and the UK. Peloton's worldwide install totals for the first two days of January 2023 were down 39% YoY.
Key Takeaways:
Enterprise SaaS company, Salesforce, reduced its headcount by 10% last week with the company citing over-hiring practices during the pandemic as well as a broader slowdown in enterprise spending, the latter of which could accelerate in a recession
Per Sensor Tower estimates, worldwide installs of Salesforce’s portfolio of apps (including Slack) were down 20% YoY (-16% QoQ) in 4Q22
Installs of the Slack and Salesforce mobile apps in 4Q22 were down 25% and 10% YoY, respectively
Slack is experiencing weakness in some of its largest international markets: Since 2020, The Philippines, Germany, India, Japan, and the UK have made up ~30% of total installs, yet were down 79%, 61%, 34%, 7%, and 2% YoY, respectively, in 4Q22
The start of each year has historically provided a boost for Peloton with consumers looking to fulfill their New Year's resolutions
Per Sensor Tower estimates, worldwide install totals through the first two days of January 2023 reached ~16k, down 39% YoY for the same time period, and -70% and -49%, respectively, against 2021 and 2020 totals
For more information, request the full report from reports@sensortower.com.
Written by: Seema Shah, VP, Insights
Date: January 2023