A sense of optimism was in the air as we kicked off 2024. With inflation dying down and the promise of interest rates falling at some point this year, many felt that the economic environment in 2024 would improve. Or maybe it was more a sense of… how can things get any worse?
It’s fair to say that 2023 was a record year for tech layoffs, with the final total recorded at over 260,000 by Layoffs.fyi. Although 2024 began with much optimism, layoffs are still rife, with over 74,000 workers having been laid off from 255 companies.
After many years of booming growth for tech companies (especially in the cloud computing space), including the likes of Salesforce, Amazon, Microsoft, and Alphabet, we continue to see revenue growth declining. This has resulted in Amazon cutting jobs in their cloud computing unit, Google continuing to lay off employees, and Salesforce giving notice to 1% of their workforce earlier this year.
But it’s not just the classic tech firms taking this stance. Over the past week, Tesla announced that they would be laying off 10% of their workforce – that’s roughly 14,000 employees globally. This was followed by Rivian, another EV manufacturer, who laid off 1%, which adds up to a total of 11% so far this year. Both companies have cited a slowdown in demand.
So, optimism aside, it seems that we have a way to go before we are out of the weeds, with companies and consumers still being cautious when it comes to spending.
What Does This Mean for the Salesforce Ecosystem?
Over the past couple of years, the Salesforce ecosystem has been hit pretty hard; Salesforce’s declining revenues have had a trickle-down effect on the rest of the ecosystem. Fewer products and licenses being sold has meant less work for Salesforce consultancies and contractors, and cost-conscious buyers have been slowing down revenue growth for ISVs and AppExchange companies.
Salesforce companies operating in the ecosystem haven’t been immune from layoffs either, with plenty of ISVs being forced to cut jobs in 2023 (although, as far as I’m aware, these cuts haven’t been as present in 2024).
But it’s not all bad news! While it’s not uncommon to hear about the odd Salesforce consultancy going out of business, many are still growing and thriving. Salesforce is still moving forwards, slowly but surely, adding a healthy +$3B to the Salesforce economy each year, which is a huge catalyst for more spending in the ecosystem.
What Does This Mean for Salesforce Job Seekers?
I’ve done a fair amount of research on the current state of the Salesforce job market since the start of the year, and it’s a bit of a tricky time to be a Salesforce job seeker.
The slowdown in revenue growth across ecosystem companies means that there is less hiring going on, and layoffs across the wider industry are creating a hyper-competitive, saturated market. An overview of this is covered in my article: “The End of an Era for “Easy” Salesforce Jobs?”
Unfortunately, this status quo does tend to affect the entry-level talent pool in the Salesforce ecosystem more than those who have a few years of experience and specializations under their belt. Recruiters in the space are also being affected, with many having to shed headcount and share disappointing news with entry-level candidates.
The same type of phenomenon does seem to be hitting companies in the same way that it’s hitting candidates. If you fail to have a strong foothold in the ecosystem with deep product, industry, or expertise specialization, it can be a real challenge to remain relevant in an ecosystem that is maturing at such a rapid pace.
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