To put this into perspective, assuming the average salary of the 8k employees is $125,000, that would only save 80 jobs.
Plus for many companies, RSUs can be an additional significant fraction or even multiple of base salary.
So it's a lot of money, but would pay for fewer jobs than you might think.
It's also possible - I have no idea - that the marketing featuring McConaughy made more money in new sales than it cost. I assume this was the expectation for the deal.
This is for a good job. Temp agencies often pull about 30% of the total payment for each temp and permatemp they employ at another company. And they make a profit off of that overhead.
And I don't know about the jobs at Salesforce, but I find it odd that the person you're replying to assumed an average $125k per job. That's a really nicely compensated job, even if the $125k is total compensation, not just salary.
Glassdoor says $138K base and $184K total comp at Salesforce for a SWE, with Senior SWE 10% higher.
- Federal taxes,
- health insurance,
- 401k matching,
- other benefits big corporate SaaS companies offer,
- office space
I looked up their most recent 10k filing: https://s23.q4cdn.com/574569502/files/doc_financials/2023/q4...
From: https://investor.salesforce.com/financials/default.aspx
For the 3 months ending in January 31 2023 page 6 has $5.927 billion in operating expenses. Subtract out the $0.828 billion in restructuring costs for $5.099 billion in above the line expenses. For about 80,000 employees this means about $255,000 in expenses per employee.
I've never read a 10k before so I hope I'm doing it right.
Assuming all of those expenses go away with the employee (which will obviously not be the case), laying off 8,000 employees would save an average of about $2 billion per year.
This is the big takeaway from the 10k filing, and I wonder if it changed in the last two months: "Announces Share Repurchase Program increased to $20 billion".
for one year