Salesforce, Workday Are Hiring More Overseas To Save Cash

Software companies are under pressure to invest in new AI capabilities without denting profits. One increasingly popular strategy to keep costs low is to shift hiring outside the US. From a report:Â Salesforce and Workday are simultaneously cutting jobs and highlighting the cost savings from adding workers internationally. 'Do we need to hire everybody in San Francisco?' Salesforce Chief Operating Officer Brian Millham said at an event hosted by Barclays in December. 'Or can we think about other locations that are cheaper where we can get really incredible labor like India and Mexico City.'

US-based employees at Salesforce dropped to 51% from 58% in the four years ending in January 2024. In early 2023, it announced a reduction of roughly 8,000 jobs. Earlier this week, Bloomberg reported that the San Francisco-based software company would cut more than 1,000 positions in large part to make room for new AI-focused hiring. Human resources software maker Workday, based in Pleasanton, California, announced Wednesday that it would eliminate about 1,750 jobs. Last year, Chief Executive Officer Carl Eschenbach emphasized a new focus on expanding margins, saying hiring more in countries like Costa Rica would help in this effort.Â

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