“The Big Short” Iinvestor michael bury has cast doubt on the volatility of the share price of Salesforce Inc crm Following The company plans to reduce its current workforce by up to 10%.
“CRM should have been down 25% on job cuts. Job cuts are therefore not the reason,” tweeted Bury.
Read also: Best Penny Stocks
Salesforce reportedly plans to close select offices to help manage costs and looks to restructure Fee between $1.4 billion and $2.1 billion.
The company’s share price closed 3.57% higher on Wednesday in the wake of the announcement. Although a reduction in the workforce is negative news that hurts jobs and livelihoods, Wall Street often views such developments as positive for balance sheets, which explains the rise in share price.
Barry’s reference to what should be the ideal direction of stock price movement is a reflection of this irony.
Management Statement: “The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions,” said the Salesforce co-CEO. marc benioff said in a letter to employees, according to Reuters.
“As our revenue boomed through the pandemic, we hired a lot of people who have weathered this economic downturn, and I take responsibility for that,” he said.
According to Reuters, Salesforce stock is down more than 38% over the past year due to consecutive quarters of slow growth.
Read further: After Larry Summers, Rob Reich goes after House GOP over IRS funding cut plan: ‘Already trying to demoralize Congress’