👉 Background: Salesforce was founded back in 1999. Put simply, it builds really expensive enterprise software in the cloud. Think: customer relationship management tools, customer service, marketing automation. IYKYK.
👉 What happened: Over the past 24 years, Salesforce has grown into an absolute behemoth..
But like all tech companies, it wasn’t immune to the tech downturn, it cut 10% of its workforce recently, which was more than 7,000 people.
👉 What else: But now, Salesforce announced a 14% growth in revenue year over year. And after getting pressured by a range of activist investors, profitability has become a much higher priority at the company.
💡 Activist investors are investors who purchase large stakes in a company and then use their position to push for change. It might be changes in the company's management, strategy, or its operations.
💡Activist investors know how to get things moving - they often use public pressure to get their way. For example, they may launch a public campaign to pressure the company to make changes.
💡Salesforce has been facing serious pressure from activist investors to prioritise profitability in the business. And clearly it forced Salesforce to act.
So while the methods of activist investors can sometimes be aggressive or controversial, they are often seen as a way to hold companies accountable.
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