fb-pixel Skip to main content

2023 brings more jobs cuts for Mass. tech workers

Pegasystems and Salesforce are latest companies admitting they overhired during COVID.

The Salesforce.com Inc. Tower is reflected in a Salesforce.com office building in San Francisco on Feb. 23, 2021. San Francisco-based software company Salesforce, which has significant offices in Burlington and Cambridge, said Wednesday morning that it will cut 10 percent of its employees.David Paul Morris/Bloomberg

The start of the new year brought more bad news for workers at local tech companies.

Cambridge-based software company Pegasystems said Tuesday that it was laying off 4 percent of its workforce. And San Francisco-based software company Salesforce, which has significant offices in Burlington and Cambridge, said Wednesday morning that it will cut 10 percent of its employees.

Both companies sell customer relationship management software and experienced a sales lift at the start of the pandemic that has now faded amid higher interest rates and the slowing economy. The cuts follow similar moves last year by tech companies of all sizes, including Amazon, Wayfair, and Everbridge.

Advertisement



Shares of Pegasystems, which have lost 68 percent over the past year, gained 2 percent on Wednesday. Shares of Salesforce, down 44 percent over the past year, gained 4 percent.

Cuts at Pega will come from the company’s “go-to-market” team, which handles sales and marketing. “These are some of the most difficult decisions to make but are needed for us to succeed in the short and long term,” chief executive Alan Trefler wrote in an e-mail to staff that was included in a securities filing. The cost cutting effort aims include to “enable greater efficiency and sharpen our client focus — especially where our investment has outpaced our growth.”

The cuts amount to about 250 people in total at Pega. The company declined to comment about the impact in Massachusetts.

Salesforce will cut about 8,000 jobs worldwide and close some offices. The company also declined to comment about the impact in Massachusetts.

“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,” chief executive Marc Benioff wrote in an e-mail to employees that was included in a securities filing.

Advertisement



California-based Salesforce acquired Demandware in Burlington for $3 billion in 2016.


Aaron Pressman can be reached at aaron.pressman@globe.com. Follow him on Twitter @ampressman.