Salesforce Guts Tableau After Spending $15.7 Billion in 2019 Deal

Salesforce division Tableau was hit harder than other units in the company's largest-ever round of jobs cuts this week, adding to a major reorganization that signals the $15.7 billion acquisition hasn't lived up to expectations. Bloomberg reports: Chief Executive Officer Mark Nelson was ousted from the data analytics division in late December and more senior staff were axed Wednesday as part of Salesforce's announcement that it would eliminate 10% of its workforce. Job reductions at Tableau were greater, proportionally, than the company at large thus far. After a half-decade of fast hiring and large acquisitions, Salesforce is trying to cut costs and better integrate the companies it has purchased. The software maker, which lost almost half of its value in 2022, has been pressured by investors to improve profit. The job cuts made public Wednesday -- about 8,000 workers -- are less than half of the number of employees hired in the pandemic and followed the announced exit in December of co-CEO Bret Taylor and the elimination of hundreds of sales positions in November. Acquisitions fueled the company's headcount growth. Tableau, then Salesforce's most expensive deal when it was bought in 2019, came with 4,200 employees while Slack, purchased in 2021, and Mulesoft, acquired in 2018, together brought another 3,700, according to company filings. The three deals combined cost almost $50 billion with the estimated $27.7 billion for Slack leading the way. Workers across these acquired divisions were pummeled by the job reductions, particularly in recruiting and customer success roles, according to company employees. Tableau is increasingly being treated as a visualization tool for data contained in Salesforce's other services rather than a standalone program -- co-founder and CEO Marc Benioff highlighted the new integrations in a December keynote speech. The division has trailed the rest of the company in sales growth since the acquisition. Salesforce also plans to pare back its office footprint. The company currently has four offices in the Seattle area, more than any other city, according to the company website. Three were inherited in the Tableau deal. Salesforce declined to comment on whether it would be reducing space in the Seattle area. Asked about the effect of Wednesday's job cuts on Tableau, a Salesforce spokesperson said the unit "is a vital part of our product strategy." Tableau contributes to a product that "processes over 100 billion customer records, and helps our customers understand and act on their data," the spokesperson said.

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