The company Salesforce has made some changes. It has bought back more of its own shares, worth $10 billion. It has also begun a new dividend. But the company said it thinks it will earn less money this year than people thought. This news made the price of Salesforce’s shares drop by 2%.
The company thinks it will earn between $37.7 billion and $38 billion this year. This is less than what experts thought, which was $38.62 billion.
Salesforce let go of about 700 workers last month because it is afraid the economy will go slower. This is about 1% of all the Salesforce workers in the world.
Another company, Snowflake, also said it will earn less money than people thought.
But Salesforce earned more money than people thought in the last three months of last year. It earned $9.29 billion. This is more than what experts thought, which was $9.22 billion.
In next year, some investors want Salesforce to make changes to save money and buy back more of its own shares.
Vocabulary List:
- dividend (noun): A sum of money paid regularly (typically annually) by a company to its shareholders out of its profits.
- economy (noun): The wealth and resources of a country or regionespecially in terms of the production and consumption of goods and services.
- shareholders (noun): A personcompanyor institution that owns shares in a company.
- earn (verb): Obtain money in return for labor or services.
- investors (noun): A person or organization that puts money into financial schemespropertyetc. with the expectation of achieving a profit.
- experts (noun): A person who is very knowledgeable about or skillful in a particular area.
