Salesforce Inc. has announced its plans to divest Tableau’s Seattle headquarters while retaining its office in Fremont, which was initially intended for subleasing, according to a recent report by the Puget Sound Business Journal. The company confirmed this strategic move on Friday, emphasizing its commitment to maintaining a presence in the Seattle area.
The NorthEdge building, located at 1621 N. 34th St., encompassing over 200,000 square feet of space, was listed by Salesforce on the sublease market on Friday. This space was acquired by BioMed Realty in late 2021 for $220 million, according to previous reporting by The Registry. Meanwhile, Salesforce still intends to sublease a Tableau office in Kirkland, but it will continue to operate from its existing Data 1 building in Fremont.
Last month, Salesforce revealed its decision to relinquish two office spaces dedicated to Tableau, the data visualization company it acquired four years ago. At that time, the affected locations included the Data 1 building in Fremont, spanning over 120,000 square feet, and the Kirkland Urban North space at 400 Urban Plaza, comprising 92,000 square feet.
A spokesperson from Salesforce affirmed the significance of Tableau to their business, stating, “Tableau is a critical and thriving part of our business, and we remain fully committed to our Seattle-based home and employees.” The spokesperson further highlighted that employees would have access to vibrant office environments at the Data 1 and Bellevue offices, fostering connections with colleagues and customers in the region.
In addition to the aforementioned spaces, Salesforce also occupies the 929 Tower in Bellevue.
In April, Salesforce announced these office changes as part of its cost-cutting measures outlined at the beginning of the year. Alongside laying off 10 percent of its 73,000-strong workforce, Salesforce disclosed plans for office exits and space reductions on January 4. Subsequently, the company has also decided to sublease additional space in San Francisco.
Salesforce’s acquisition of Tableau in 2019 for nearly $16 billion initially allowed the latter to operate independently. However, former employees have indicated strained relations between the two companies over the past year.
Tableau experienced the departure of several key executives in 2022, including former CEO Mark Nelson. The exodus also impacted marketing, customer service, and finance teams, with individuals such as Jennifer Day, Jay Peir, Wendy Turner-Williams, Jackie Yeaney, and Tom Walker leaving their respective roles. According to former Tableau executives who spoke on the condition of anonymity, this led to a reduction in Tableau’s control over product and product engineering teams, as well as a loss of independence.
One former executive expressed, “Zero independence — leaders pushed out, talent pushed out or cut, no funding and no control over product roadmap anymore,” according to the report.
As of 2022, Salesforce employed approximately 4,500 individuals in the Puget Sound region, largely due to the Tableau acquisition. The company has not provided an updated employee count since the implementation of the layoffs.
