Salesforce’s Benioff says 50-60% of employees are likely to work from home

Salesforce CEO Marc Benioff said Monday that he expects half or more of his company’s employees to continue working from home after the pandemic.

Despite considerable real estate investments in recent years, including the opening of the 61-story Salesforce Tower in San Francisco in 2018, Benioff said he has accepted that there is no return to the days before Covid. In an interview that aired on CNBC’s “Closing Bell” show, Benioff said that between 50% and 60% of employees will likely work from home, up from 20% before the pandemic.

“The past is gone,” Benioff said. “We have created a whole new world, a new digital future, and you can see how it unfolds today.”

Like the broader cloud software industry, Salesforce has weathered the pandemic as companies became more reliant on tools that enabled their customers and employees to stay productive from remote environments. Salesforce’s revenue last fiscal year increased 24% to $ 21.3 billion, keeping the expansion roughly in line with its five-year average.

Benioff highlighted some of his company’s projects with government organizations around the world directly linked to the pandemic. He said the company rebuilt New York City’s vaccine management system and contact tracing system and put similar systems in Japan and Victoria, Australia.

“We are busy,” Benioff said. “We have a lot to do. We have these commercial clients and public sector clients “and they are all” driving our business so aggressively, “he said.

By downsizing its office needs, Salesforce took $ 216 million in impairments last year due to “real estate leases in select locations that we have decided to exit from,” according to its annual report. Salesforce is one of many technology companies in the Bay Area trying to figure out how to make use of space that will no longer be occupied by employees. Others include Dropbox, Uber, and Zendesk.

Benioff suggested that the space be used for events, training facilities and as “cultural participation centers.”

“All of these things together make up the new way of working,” he said.

LOOK: Salesforce plans to host Dreamforce in person in 2021

Add Comment