Salesforce Sees Return of Former Executives as It Navigates Challenging Economy
Rejoining the Team
Ariel Kelman, a former marketing executive at Amazon Web Services and Oracle, was approached by Salesforce CEO Marc Benioff on Twitter to inquire about his interest in returning to the company. Kelman, who had been away from Salesforce for over a decade, decided to rejoin the company as its chief marketing officer in June.
Miguel Milano, who previously led sales in major international markets for Salesforce, also returned to the company in June as the chief revenue officer. Milano was convinced to come back by Salesforce operating chief Brian Millham after spending three years at startup Celonis.
These are just two examples of at least eight former Salesforce executives who have come back to the company in 2023. With the departure of co-CEO Bret Taylor earlier this year, Benioff is relying on the experience and expertise of the old guard to navigate the challenging economy and slow growth.
The Challenges Ahead
Salesforce recently announced a restructuring plan that includes cutting 10% of its workforce, or over 7,000 jobs. Benioff acknowledged that the company had hired too many people leading up to the economic downturn caused by the pandemic.
The pressure to deliver results has been mounting on Benioff, as the company’s stock lost almost half its value last year. Activist investors demanded stronger growth, profitability, and a more strategic approach to dealmaking.
Stock is up, but growth still slow
Despite the challenges, Salesforce’s stock has seen a 62% increase this year, outperforming the Nasdaq. The company has made efforts to improve efficiency, resulting in a 9% reduction in sales and marketing costs in the July quarter.
While revenue growth has yet to rebound, hovering around 11% for the past two quarters, the return of former executives like Kelman and Milano brings fresh ideas and strategies to drive growth.
