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Salesforce is Cutting Workforce by 10% After Pandemic Hires

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Marc Benioff, a senior executive at Oracle, founded Salesforce, which swiftly became one of the biggest businesses in the world and went public in 2004. By fiscal year 2009, Salesforce became the first cloud computing business to generate US$1 billion in revenue, and by 2022, it became the largest corporate software company in the world.

Over 7000 people will be affected by the 10% staff reduction announced by Salesforce, which will also close locations in “certain geographies.”

As one of the biggest technological businesses today, Salesforce will rank as the 61st largest company in the world by market cap on September 19, 2022, with a valuation of around US$153 billion.

Pandemic hires

Benioff stated that Salesforce had hired too many people via the pandemic during the boom times, which was a problem shared by other businesses that had to make major layoffs during the previous year. As background, the corporation reported 79000 employees in February of last year, a 30% rise from 2020.

I’ve been reflecting a lot on how we got here, Benioff wrote. I accept responsibility for the hiring excess staff before the current economic slump because our revenue increased due to the epidemic.

Those impacted in the United States will receive a “minimum” of nearly five months’ pay, in addition to health insurance and “other benefits to help with their transition,” according to Benioff. Benioff stated that employees should anticipate “equal levels of support” elsewhere.

The disclosure comes shortly after activist investor Starboard Value bought a stake in the business software firm. Based on our analysis at the time, we concluded that Starboard Value’s investment included a cost-cutting strategy. Undoubtedly, Salesforce disclosed an initial round of layoffs affecting “hundreds” of employees in early November. Bret Taylor, co-CEO and co-chair, then announced his resignation shortly after.

Layoff rounds

The economy is still struggling four days into the new year, and today’s news comes after a number of significant layoffs last year, including those at Facebook parent company Meta, which slashed 13% of its employees, and Stripe, which cut 14%. There are numerous indications that Tesla is getting ready for another round of layoffs in the first quarter of 2023, and Amazon last week got a $8 billion loan as part of a larger strategy to combat the “uncertain macroeconomic environment.”

Salesforce has experienced enormous challenges, just like virtually every other software business. Salesforce’s market worth has seen something of a “correction” in the intervening months, sitting at about $134 billion — roughly where it was three years ago — after reaching an all-time valuation top of more than $300 billion in late 2021. At its most recent earnings release the previous year, the corporation also declined to make a sales prediction for 2023.

Elon Reeve Musk Completes $44 Billion Takeover of Twitter

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Elon Reeve Musk has finalised his $44 billion deal to take Twitter private, putting an end to one of the most publicised and dramatic buyout sagas in recent memory.

Musk is the richest person in the world, according to both the Bloomberg Billionaires Index and Forbes’ real-time billionaires list.

Even as early as 2017, Musk indicated interest in acquiring Twitter. Musk started buying Twitter shares in January 2022, and by March had amassed a 5% position in the firm. By April, he had a 9% stake, making him the company’s largest shareholder.

In contravention of American securities rules, he failed to submit the required SEC paperwork within 10 days of his ownership crossing 5%. On April 4, when he did make his investment publicly known in an SEC 13G filing, Twitter stock saw its biggest intraday gain since its 2013 initial public offering.

Following Musk’s remarks from March, in which he questioned Twitter’s commitment to free expression and floated the idea of starting a competing social media platform, it was revealed that Musk had acquired a sizeable investment in the company.

In an effort to create a “super app” that combines messaging, payments, and commerce, Musk has pledged to reduce Twitter’s workforce and operating expenses while fostering product innovation.

Musk had first agreed to purchase Twitter for $54.20 per share in April. A few months later, he filed a lawsuit against the San Francisco-based business to cancel the agreement, claiming that the platform had misled investors and regulators about false accounts and cyber security. In an effort to pressure the billionaire to complete the transaction, the social media business retaliated and countersued, setting up a contentious court dispute and discovery process.

Musk has promised to contribute a total of $33 billion in equity.

How Will Regulation Affect Cryptocurrency?

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Since the beginning of Bitcoin, cryptocurrency has been both praised for its potential and criticised for its lack of regulation. Some believe that regulation will help to legitimise cryptocurrency and attract more mainstream investors, while others worry that too much regulation will stifle innovation. So far, governments have taken a variety of approaches to regulating cryptocurrency, and it’s still unclear what the most effective approach will be.

In the early days of Bitcoin, many people were attracted to the currency because it was seen as an unregulated Wild West. However, as Bitcoin has become more popular, governments have begun to take notice and consider how to best regulate the currency. Some countries, like China, have outright banned cryptocurrency exchanges, while others have been more welcoming. Japan, for example, has legalised Bitcoin and introduced regulations that are designed to protect investors.

The United States has taken a more piecemeal approach to regulation, with different agencies taking different stances. The SEC has cracked down on some ICOs that it believes are violating securities laws, while the CFTC has allowed Bitcoin futures trading. It’s still unclear how the US will approach regulation in the long run, but it’s clear that the government is taking cryptocurrency seriously.

Cryptocurrency regulation is still in its early days, and it’s hard to predict how it will develop. However, it’s clear that regulation will have a big impact on the future of cryptocurrency. Investors should pay close attention to developments in this area, as they will likely have a significant impact on the value of their investments.

What will be the impact of regulation on cryptocurrencies?

Safer Crypto Ecosystem

The SEC has been clamping down on ICOs and crypto exchanges, and this is likely to continue. This is good news for investors, as it will create a more regulated and safe environment in which to invest. However, it remains to be seen how this will affect the price of cryptocurrencies.

The SEC’s actions are designed to protect investors from fraud and to ensure that companies comply with securities laws. In the past, there have been many instances of fraud in the crypto world, and the SEC is working to put an end to this.

The SEC has already shut down several ICOs and exchanges, and it is likely that more will be shut down in the future. This will make it harder for people to invest in cryptocurrencies, but it will also make the market more stable.

More Stability in the Market

The SEC has been providing more clarity lately on its views of cryptocurrency. In March, the SEC issued a report that concluded that digital assets like Bitcoin are not securities. This was a relief to many in the industry, as it removed the possibility of crypto being heavily regulated like other securities. If you are familiar with cryptocurrency regulations, you will know how SEC and crypto lending regulation are getting a lot of attention now. Some time ago, the SEC charged two individuals with running a fraudulent crypto lending scheme. The SEC alleges that the defendants promised annual returns of up to 45%, but instead used investor funds to pay for their own expenses and make Ponzi-like payments to earlier investors.

This case is important because it shows that the SEC is taking an active interest in regulating the crypto lending space. This is good news for investors, as it will help to create more stability in the market. With clear rules and regulations in place, investors will feel more confident about investing in crypto. This will lead to more capital flowing into the space, and ultimately to more innovation and growth.

So far, the SEC has been slow to act on crypto. But the recent cases show that the SEC is starting to take a more active role in regulating the space. This is good news for investors and will help to create more stability in the market.

Increase Investor Protection and Confidence

How will SEC regulation of cryptocurrency exchanges and other platforms affect investors? The SEC’s decision to regulate cryptocurrency exchanges and other platforms is a positive step for protecting investors. By doing so, the SEC is providing more clarity and structure to an industry that has been notoriously opaque. This will help increase investor confidence in the space, as well as provide more protection from fraud and other malicious activity.

In addition, the SEC’s decision to require registration of cryptocurrency exchanges will help to level the playing field between these exchanges and traditional securities exchanges. This will make it easier for investors to compare apples to apples when choosing where to invest their money. Overall, the SEC’s regulation of cryptocurrency exchanges and other platforms is a positive development for the industry and will help to increase investor protection and confidence.

Stablecoins May Face Greater Scrutiny

The rise of stablecoins has been one of the most talked-about trends in the cryptocurrency space over the past year. These digital assets are designed to offer all the benefits of cryptocurrency, without the volatility that has come to be associated with Bitcoin and other major coins.

This stability is achieved by pegging the value of a stablecoin to another asset, typically a fiat currency like the US dollar. Tether (USDT), the most popular stablecoin in the market, is pegged to the dollar on a one-to-one basis. While stablecoins have been incredibly popular with investors and traders looking for a way to hedge against volatility, they have also come under increased scrutiny from regulators. One of the key concerns that regulators have with stablecoins is the way in which they are managed and operated. Because stablecoins are designed to maintain a consistent value, there is often tight control over their supply. This can be compared to traditional fiat currencies, which are managed by central banks that can print more money as needed.

The SEC’s decision to regulate cryptocurrency exchanges and other platforms is a positive step for protecting investors. By doing so, the SEC is providing more clarity and structure to an industry that has been notoriously opaque. This will help increase investor confidence in the space, as well as provide more protection from fraud and other malicious activity.

In addition, the SEC’s decision to require registration of cryptocurrency exchanges will help to level the playing field between these exchanges and traditional securities exchanges. This will make it easier for investors to compare apples to apples when choosing where to invest their money. Overall, the SEC’s regulation of cryptocurrency exchanges and other platforms is a positive development for the industry and will help to increase investor protection and confidence.

PwC Appoints Jan Sijbrand and Troy Paredes

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Jan Sijbrand and Troy Paredes will join the board of PwC, which is responsible for the governance of PwCIL and the PwC Network, oversight of PwC’s network leadership team, and approval of the standards by which each PwC firm must abide.

From 5 March 2021, Jan and Troy will work with the existing 18 board members who are made up of partners and principals from 13 PwC firms from across the world and as of June 24, 2021 they will formally join the new PwCIL board which is currently being elected.

Jan has enjoyed a long career in banking, including head of risk management for ABN Amro, Chief Risk Officer and member of the managing board of NIBC Bank, and member of the executive board and chairman for supervision of De Nederlandsche Bank.

In addition Jan was a member of the supervisory board of the European Central Bank from 2015 -2018 and a member of the board of supervisors of the European Banking Authority from 2011-2018. Jan brings a wealth of experience of financial services, risk management, oversight and supervision.

Jan also currently serves as deputy chairman of the supervisory board of PwC Netherlands.

Troy is the founder of Paredes Strategies LLC, a consulting firm. He served as an SEC commissioner in the United States from 2008 to 2013 – during the financial crisis and its aftermath.

During his time with the SEC, Troy played a key role in rulemakings and other regulatory matters concerning all aspects of securities regulation.

Troy brings to the PwCIL board a truly extensive breadth of experience, including governance, compliance, strategy and regulatory. Troy also currently serves as an external director on the oversight board of PwC United States.

Investigating Claims on Behalf of The Investors

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The Schall Law Firm announces that it is investigating claims on the behalf of the investors in Alder BioPharmaceuticals, Inc. for potential breaches of fiduciary duty on the part of its directors in connection with the pending sale of the Company to H. Lundbeck A/S.

Alder is a biopharmaceutical company committed to transforming migraine treatment through the discovery, development and commercialisation of novel therapeutic antibodies. The company’s mission is to forever change migraine treatment and give people with migraine their lives back.

The Schall Law Firm represents investors injured by stock fraud, breaches of fiduciary duty, and other management and director malfeasance.

We also encourage you to contact Brian Schall of the Schall Law Firm, 1880 Century Park East, Suite 404, Los Angeles, CA 90067, at 424-303-1964, to discuss your rights free of charge. You can also reach us through the firm’s website, or by email at brian@schallfirm.com.

The Schall Law Firm represents investors on a contingency fee basis. We are a securities class action firm singularly committed to recovering shareholder money from publicly traded companies that committ fraud.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.

The Schall Law Firm represents investors on a contingency fee basis. We are a securities class action firm singularly committed to recovering shareholder money from publicly traded companies that commit fraud.