In an announcement to its employees, Salesforce has said that it will be cutting about 10% of its workforce and reduce its real estate footprint.

This will make Salesforce the latest tech company slashing their expenses during this period of economic uncertainty.

In the letter; CEO Marc Benioff, admitted to growing the headcount more than they should have earlier in 2022. He wrote, “I’ve been thinking a lot about how we came to this moment. As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing, and I take responsibility for that.”

This is not the first tech company to have to face the lessening effects of the pandemic.

Many tech companies rocketed up with the rush to online services during the beginning of the pandemic, and many are now dealing with people returning to mostly normal lives.

Many other tech founders and CEOs have also since admitted they failed to accurately gauge the pandemic demand, with companies such as Amazon and Meta also announcing company-wide layoffs.

In the letter, Benioff promised that impacted employees in the United States would, “receive a minimum of nearly five months of pay, health insurance, career resources, and other benefits to help with their transition.” 

Shares of Salesforce (CRM) were up more than 3% in the early trading the day of the announcement.