US technology company Salesforce said today it would lay off about 10% of its employees and close some offices, becoming the latest tech firm to undertake cost cuts amid an economic slowdown.
The company employs more than 2,500 people in Ireland.
It is not yet known how many Irish staff will be affected by today's announcement.
The company expects the move to lead to about $1.4 billion to $2.1 billion in charges, of which about $800m to $1 billion will be recorded in the fourth quarter of fiscal 2023.
"The environment remains challenging and our customers are taking a more measured approach to their purchasing decisions," co-chief executive Marc Benioff said in a letter to employees.
Companies from Meta Platforms to Amazon.com have in the past year taken steps to prepare for a deep downturn as global central banks have aggressively raised interest rates to tame decades-high inflation.
Businesses that relied on cloud services during the pandemic are now trying to reduce expenses through job cuts or delaying new projects.
This has affected companies such as Salesforce, which owns office messaging app Slack, and Teams parent Microsoft.
"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," Benioff said.
Salesforce growth has slowed during the past four quarters, with the company posting its weakest revenue increase for the three months ended October 31, as a strong dollar also eats into its sales.
The company said affected employees in the US will receive a minimum of about five months pay, health insurance and other benefits while those outside the country will receive a "similar level of support".
Salesforce had 73,541 employees worldwide at the end of January last year.
Shares of Salesforce lost nearly half of their value in 2022. They gained 3.4% on the enterprise software firm's workforce reduction plans today.