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Less than half of the Microsoft employees who answered an internal poll said they'd stay if they got another offer, an internal message suggests. The poll results come after Microsoft paused raises and cut bonus and stock awards. Less than half of Microsoft employees who answered an internal survey called Daily Signals said they would stay at the company if they received a comparable offer, an internal message viewed by Insider suggests. The latest poll came after Microsoft announced it would not give out raises this year and would reduce bonus and stock awards. The change has been another blow to morale for some employees, according to internal messages viewed by Insider.
Persons: they'd, Microsoft's, Satya Nadella, Kathleen Hogan, Hogan, Ashley Stewart Organizations: Microsoft, Daily Signals
Oracle laid off hundreds of employees in its health unit on Thursday, insiders said. Oracle Health includes health IT giant Cerner, which it acquired last year for about $28 billion. Cerner is Larry Ellison's primary focus as he bets on it to prove Oracle's cloud to the world. Oracle on Thursday laid off hundreds of employees, rescinded job offers, and cut back open positions within its health unit, three people familiar with the matter told Insider. Oracle Health includes health IT giant Cerner, which it acquired last year for about $28 billion.
Persons: Oracle, Larry Ellison's, Cerner's, Cerner, Larry Ellison, Ashley Stewart, Blake Dodge Organizations: Oracle Health, Oracle, US Department of Veterans Affairs
One exec explained a reason for the change is "wanting to invest in the AI wave." A Microsoft executive said a reason behind the company's decision to halt raises and cut bonuses and stock awards this year is "wanting to invest in the AI wave," an internal message viewed by Insider read. "The most important lever for almost all our employees' compensation upside is the stock price," Capossela wrote in the message. Some Microsoft employees have been vocal about the blow to morale from pay changes and recent layoffs, saying in internal messages directed at executives and viewed by Insider. That might be true if we were a private company perhaps like a private law firm, but for publicly traded companies like Microsoft, investors become a critical stakeholder.
Persons: Satya Nadella, Chris Capossela, Capossela, I've, Ashley Stewart Organizations: Microsoft, OpenAI, Activision, Companies
Some Microsoft employees have criticized the company's decision to halt raises and cut bonus and stock awards, according to internal messages viewed by Insider that were directed at executives. A later email from Microsoft's chief people officer, Kathleen Hogan, which was viewed by Insider, instructed managers to give fewer employees "exceptional rewards." While the comments may not reflect the feelings of all employees at Microsoft, they provide a window into employee sentiment over these changes. On the all-hands call, Bell said: "Merit increases and employee pay are supply and demand-driven, and for years we have enjoyed bigger paychecks than our peers in other sectors." Are you a Microsoft employee or do you have insight to share?
Persons: Satya Nadella, Kathleen Hogan, Hogan, Nadella, Charlie Bell, We've, LT, Bell, Ashley Stewart Organizations: Microsoft, Employees
Microsoft's M12 changed its strategy to become less like a VC and more like a business development team. "As with any leadership and strategy change, we aligned our team in a way that helps us meet our future direction. The problem with that shift, sources said, is that a corporate fund needs people who have very different career goals than an independent venture fund does. "Over the last year and half, we brought on new leadership at M12 and intentionally changed our corporate VC strategy. Employees who went along with the strategy change are generally happy at the fund, two of the people said.
After the acquisition closed in June, Oracle has laid off more than 3,000 of the 28,000 original Cerner employees, one of the people said. According to his LinkedIn, Feinberg left the CEO role in September before becoming "chairman" of Oracle Health. After Johnson left, Oracle moved data and artificial-intelligence back under its cloud business. Internally, the face of the unit appears to be Oracle Health General Manager Travis Dalton, who has been in charge of all-hands meetings. Oracle Health is in charge of a contract worth several billion dollars to overhaul the US Department of Veterans Affairs' information systems.
Microsoft plans to halt raises and cut its bonus and stock awards budget, according to an internal email. A separate internal email instructs managers to give fewer employees "exceptional rewards." Microsoft sent managers an email about the company's plan to halt raises and cut its bonus and stock awards budget instructing them to give fewer employees exceptional rewards. Microsoft's spokesperson declined to comment on the email to managers but confirmed the news about halting raises and cutting the bonus and stock award budget. Thank you for navigating a more conservative rewards budget coupled with recent workforce reductions and a challenging and dynamic environment this year.
Microsoft CEO Satya Nadella told employees in an internal email salaried employees will not receive raises this year. Microsoft will not raise salaries for full-time employees this year, according to an email CEO Satya Nadella sent to employees Wednesday morning. Nadella's email also stated the company will not "overfund" bonuses and stock awards like the company said it did last year, meaning the bonus and stock award budget has been reduced. While we will not be providing salary increases for our full-time salaried employees this year, we will continue to invest in our employees through promotions, bonus and stock." While we will have salary increases for certain hourly or equivalent roles, we will not have salary increases for ful-time salaried employees this year.
Marc Benioff's succession plan appeared to fall apart when co-CEO Bret Taylor resigned on Nov. 30. "I always have a succession plan," Benioff told Insider. A leaked Salesforce organizational chart identifies the likely candidates who are next in line. Salesforce CEO Marc Benioff says he has a successor in mind and a leaked Salesforce organizational chart identifies the likely candidates who are next in line. "I always have a succession plan," Benioff told Insider in an interview.
Amazon Web Services cofounder Charlie Bell left in 2021 for a job at Microsoft. Many in the industry, including current and former Microsoft and Amazon executives, wonder whether there's a better job for Bell. In a rare interview with Insider, Bell discussed why he left Amazon, how he met Microsoft CEO Satya Nadella, and whether he'll ever work on Azure. Wind the clock back to January of 2021, Jeff (Bezos) came to us and said, "Hey, I'm going to retire." The more I thought about it, the more I thought, "Well, Microsoft might be the place to do it."
Salesforce's co-CEO and heir apparent Bret Taylor shocked the industry when he resigned last year. It was a disappointment," Benioff told Insider. Salesforce's co-CEO and heir apparent Bret Taylor shocked the industry when he resigned on Nov. 30 — one year after taking the job. Taylor made an "abrupt" play to become Salesforce's sole CEO, according to a former executive familiar with the matter. Taylor joined Salesforce in 2016 after it acquired Quip, a productivity software startup founded by Taylor, for $750 million.
Benioff vs. Benioff
  + stars: | 2023-04-28 | by ( Ashley Stewart | Ellen Thomas | ) www.businessinsider.com   time to read: +29 min
Within Salesforce, Benioff riffs are at times met with backlash from an angry workforce. "You're not going to fire your family during times of need," a former Salesforce executive told Insider. "I don't think they understand Ohana," Benioff told Insider. "Look, we have to be the example of stakeholder capitalism," Benioff told Insider. A 'New Day' at Salesforce"I use the Japanese principle of shoshin, beginner's mind," Benioff told Insider in a phone interview in March.
Amazon Web Services began laying off cloud employees on Monday, an internal email shows. The cloud unit's professional services team, ProServe, is one of the units being cut, two people said. Amazon Web Services began laying off employees on Monday as part of Amazon's plan to trim 9,000 jobs across the company, according to an internal email viewed by Insider. I wanted to let you know that conversations with impacted AWS employees started today, with notification messages sent to all impacted employees in the U.S., Canada, and Costa Rica. In other regions, we are following local processes, which may include time for consultation with employee representative bodies and possibly result in longer timelines to communicate with impacted employees.
Many in the industry, including current and former Microsoft and Amazon executives, wonder whether there's a better job for Bell. It could get intense, with Bell going toe-to-toe with Jassy and getting into disputes with Selipsky. "There were two different sets of security products and actually different security organizations that were securing the products for Microsoft," Bell said. While Bell has imported some processes from Amazon, he has introduced them with a "Microsoft flavor," by using Microsoft productivity tools, one person said. "So many decisions get made at Microsoft by looking at PowerPoints, and sometimes those PowerPoints lack details," Rashid, the former Microsoft and Amazon executive, said.
A broad culling of management layers at Salesforce began on Monday. Salesforce is undergoing a major flattening this week as the company eliminates layers of management in response to pressure from activist investors to become more efficient. The moves, which began on Monday, involve making many managers individual contributors, two people familiar with the matter said. One of the goals is to reduce the "spans" and "layers of control" across Salesforce by giving managers a certain number of direct reports. This is designed to cut the number of management layers from the CEO down, one of the people explained.
"There just has to be a better, more human way of doing this," one employee wrote. Salesforce conducted another round of layoffs this week as part of its plan, announced in January, to reduce its workforce by 10%, Insider has learned. It's like checking the missing bulletin board after a major disaster," one employee wrote in a message viewed by Insider. "6 of my colleagues were laid off this morning," one employee wrote in a comment viewed by Insider with hundreds of supportive reactions. Are you a Salesforce employee or do you have insight to share?
Microsoft Security boss Charlie Bell confirmed layoffs in his organization. Bell said security remains critical for Microsoft and that it will continue to grow despite cuts. Microsoft Security boss Charlie Bell confirmed layoffs on his team in an internal email viewed by Insider. In Monday's email, Bell said security remains critical for Microsoft and that it will continue to grow the organization despite the cuts. "Security remains a critical area of investment for the company and our customers, and while we have restructured in some areas, we will continue to invest to grow in others."
Amazon's latest round of layoffs will include "a small, single-digit percentage" of cloud employees. Employees hoped a cloud unit all-hands would shed some light, but it provided little information. Amazon's latest round of layoffs will include "a small, single-digit percentage" of the employees in the company's massive Amazon Web Services cloud unit, according to leaked internal messages and employees present at the unit's all-hands meeting. Amazon CEO Andy Jassy on Monday announced plans to cut 9,000 employees, on top of the 18,000 layoffs the company announced earlier this year. Employees hoped a cloud unit all-hands would shed light on the plans, but according to internal Slack messages and employees present on the call, AWS CEO Adam Selipsky revealed little beyond saying a single-digit percentage of the cloud unit would be impacted.
Salesforce conducted another round of layoffs, mostly affecting sales and marketing. Salesforce conducted another round of job cuts, mostly affecting sales and marketing, part of a plan to reduce its workforce by 10%, Insider has learned. The layoffs affected hundreds of employees in locations including New York and Atlanta, according to one person's estimate. "This morning, I lost half my team to another round of Salesforce layoffs. Activist investors have been swarming Salesforce, including Starboard Value and Elliott Management.
Salesforce reduced an annual cash bonus meant to show "gratitude" to employees by 30%. On Wednesday, March 1, Salesforce reported "record high" adjusted operating margins of 22.5% during its last fiscal year and guided toward 27%. Fortune earlier reported on the bonus cut. "Record margins and 70% bonus. Are you a Salesforce employee or do you have insight to share?
A draft of Salesforce's internal business plan discusses integrating Slack, Tableau, and MuleSoft with its main products. The draft plan shows how Salesforce aspires to fix "delays in M&A integration" and "siloed priorities." A leaked draft of Salesforce's annual business plan shows the company is focused on better integrating Slack, Tableau, and MuleSoft into its core products as it faces criticism about its acquisition strategy. Salesforce is using Slack, Tableau, and MuleSoft to help fight off activistsSalesforce appears to want to fix this perception, according to the draft document and recent public moves. Slack, Tableau, and MuleSoft — and their integration into Salesforce's other key products — feature heavily in a discussion in the plan on how Salesforce will reach its goal of over 30% margins.
Salesforce reported strong results, a huge new share buyback plan, and concessions for activist investors. That wasn't enough for Elliott Management, one of the most feared activist hedge funds. Benioff will have to fix Salesforce's succession crisis to appease activist investors. Salesforce reported strong results on Wednesday, announced an extra $10 billion in share buybacks, and scrapped its M&A committee, signalling no more big, pricey acquisitions. Company insiders, former employees and Wall Street analysts increasingly expect Salesforce to put a succession plan in place soon.
Among them is Marc Benioff, who told Insider CEOs are asking "Do they need to unleash their own Elon within them?" "Every CEO in Silicon Valley has looked at what Elon Musk has done and has asked themselves, 'Do they need to unleash their own Elon within them?'" Benioff told Insider during an interview on Thursday. "That is an existential question that if you are any kind of executive in the company," Benioff added. "I had no choice but to step in and to guide the company's performance," Benioff told Insider.
An internal Salesforce business plan details how the company plans to get profit margins over 30%. One obstacle toward reaching the margin is "using culture as an excuse," the plan states. A draft of Salesforce's annual planning document details how the company plans to exceed 30% profit margins, including significant cost cutting and new releases for Slack, Mulesoft, and Tableau. Insider obtained a full draft of Salesforce's V2MOM document, which stands for Vision, Values, Methods, Obstacles, and Measurements. Arjun Bhatia, an analyst at William Blair, recently noted that Salesforce's current sales and marketing spending is much higher than peers.
Analyst said any succession plan would be about giving investors "comfort" about the future. Company insiders, former employees and Wall Street analysts increasingly expect Salesforce to put a succession plan in place soon. 'If he's willing to work with the activists, then he can stay CEO'Analysts think that if a succession plan is announced soon, it won't include Benioff's immediate exit. "Benioff is Salesforce and Salesforce is Benioff," said Dan Ives, an analyst at Wedbush Securities. Bret Taylor, former Salesforce executive SalesforceTaylor's departure in late November left Salesforce with a limited bench of potential successors.
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