Cloud-based software giant Salesforce has stopped registering some of its EU sales in the United Kingdom, instead of moving them to Germany, France, and Ireland.
In its annual report, Salesforce announced these changes and cited the volatility of Pound Sterling following Brexit that cost the company $79 million last year. In an attempt to minimize the impact of Brexit on its bottom line, Salesforce has now decided to start charging customers directly from local stores in Germany and France. It has also started investing more heavily in its resources in Dublin.
The company said in the report that revenues in Europe were negatively impacted by approximately $79 million in fiscal 2020 compared to fiscal 2019 as a result of the strengthening of British Pound Sterling. It was further added that we recognize that there are still significant uncertainties surrounding the ultimate resolution of Brexit negotiations, and we will continue to monitor any changes that may arise and assess their potential impact on our business.
In the early phases of 2020, Brexit was a big business concern and though it has since been overshadowed by the novel coronavirus (COVID-19) outbreak, it is still a big issue. The European business accounts of Salesforce accounts for roughly a fifth of its annual revenue, which came in at $17 billion in 2019. In the past, the CRM giant had announced plans of increasing its Irish workforce to around 3,000 staff over five years. It is now not clear whether Brexit will affect these ambitions.
