Elliott Investment Management has made a multibillion-dollar investment in Salesforce. Salesforce tripled its workforce over the past four years and purchased Slack in 2021 for $27.7 billion; the company also hired during the Covid pandemic. However, now Salesforce’s sales have slowed, leading to a period of layoffs and a deep stock market drop. Many of the executives have left the company, and Salesforce recently announced that it would be cutting 10% of its employees and reducing its real estate holdings.
Managing partner at Elliott explained about their investment,
“Salesforce is one of the preeminent software companies in the world, and having followed the company for nearly two decades, we have developed a deep respect for Marc Benioff and what he has built. We look forward to working constructively with Salesforce to realize the value befitting a company of its stature.” While Elliott has invested in many tech companies, it remains unclear what their goal is with their Salesforce investment. Their goals often lay in board representation and pushing for strategic inter-company changes.