SAN JOSE — Google has pushed ahead with efforts to salvage parts of older buildings as well as rescue complete historic structures that are within the footprint of the search giant’s downtown San Jose transit village.

The tech titan has offered the public pieces of the now-shuttered Patty’s Inn, whose roots as a downtown San Jose watering hole date back to the Great Depression.

Google also offered up for salvage sections of the former Sunlite Bakery Bread Depot building and will rescue the ornate entryway to the old structure, preserving the entrance elsewhere in the company’s project footprint.

Across the street from the bakery site, the old Hellwig Iron Works at 150 South Montgomery Street is expected to be preserved and creatively reused as a key component of Google’s new Downtown West neighborhood of office buildings, homes, shops, restaurants, hotel facilities, open spaces, entertainment centers and cultural loops.

“Google taking the time and opportunity to offer salvage of older buildings is commendable,” said Bob Staedler,  principal executive with Silicon Valley Synergy, a land-use consultancy. “It takes quite a bit of time and energy to make those salvage items available to the public. This effort shouldn’t be taken for granted.”

One of the numerous documents prepared in connection with the Downtown West proposal addressed Google’s plans to preserve several key buildings in the footprint of the game-changing project, where the search giant eventually intends to employ 20,000 to 25,000 tech workers.

The former Hellwig Iron Works building, constructed sometime around 1935, is one of the buildings that’s expected to be reused as it exists, although it’s likely some additions could be made to the structure.

After the ironworks closed its doors, Navlet’s Florists and a Taiko performance studio also operated in the distinctive brick building.

“150 South Montgomery Street, last occupied by San Jose Taiko, is being repurposed for adaptive reuse,” a Google spokesperson said.

It’s likely that the Hellwig Ironworks could be expanded as part of the building’s reuse, according to documents on file with city officials.

“One or more additions and adaptive reuse of the building to accommodate new arts and cultural uses” are envisioned as part of the Hellwig structure’s future, the city documents show.

Among the other historic or noteworthy buildings that are being retained, reused adaptively, or relocated:

• Kearney Pattern Works and Foundry at 40 South Montgomery Street, constructed in 1922. The historic sections of the building will be relocated about 30 feet to the south. “Once relocated, the building would be expanded and adaptively reused to accommodate new retail, cultural, arts, education, and/or other active uses,” the city report stated, with the new frontage on Montgomery Street. The non-historic portions of this building on South Autumn Street would be demolished.
• San Jose Water Works building at 374 West Santa Clara Street, constructed in 1934. The building is being preserved and renovated.
• Stephens Meat Co. “dancing pig sign.” Google removed and preserved the iconic sign that for decades was a fixture near the Diridon train station and the SAP Center. The sign, temporarily at San Jose History Park, will eventually find a permanent long-term home in the Downtown West project.
• Sunlite Bakery at 145 South Montgomery Street, constructed in 1936. Google has decided to rescue the Art Moderne-style entrance of the structure and relocate it elsewhere in the company’s new transit-oriented neighborhood.

The office building is slated to become “a cornerstone of the Downtown West neighborhood that we are developing,” Kent Walker, president of global affairs of Google owner Alphabet, said in April 2022 during a San Jose event to discuss the tech titan’s investments in the Bay Area.

The preservation of so many historic and existing prominent buildings will help Google’s new neighborhood to blend in with the existing areas on the western edges of downtown San Jose, in Staedler’s view.

“This shows a commitment to honoring the historical elements of San Jose while making way for the next evolution of the Diridon Station area,” Staedler said.

At present, Good Sam hospital accommodates 273 beds on the grounds of the healthcare organization’s campus at 2425 Samaritan Drive in southwest San Jose.

Once complete, the new campus would contain 419 beds, according to plans on file with San Jose city officials.

“HCA seeks a new planned development zoning to replace the existing zoning to address seismic retrofit requirements as required by Senate Bill 1953, to modernize hospital facilities and to improve access to comprehensive healthcare for the growing population,” Elizabeth Cobb, a senior project manager with Kimberly-Horn, a planning consultant for HCA for the hospital expansion.

The total building area at the future Good Samaritan medical complex would be slightly under 1.37 million square feet, compared with the current campus which totals 450,700 square feet, the city plans show.

That’s slightly more than three times the size of the existing campus, according to the plans filed by Good Samaritan Hospital, whose owner is Tennessee-based HCA Healthcare.

The project also envisions an interim size for the campus. In the interim phase, the Good Sam complex would total 378 beds and consist of 710,700 square feet.

The existing Good Sam complex provides 1,031 parking stalls. The proposal would eventually create a complex with 2,422 stalls.

Good Sam and HCA Healthcare want city officials to completely rezone the entire 21-acre site that accommodates the existing hospital as well as the future expansion buildings and parking facilities.

In its final phase, the project would add a medical office building totaling 200,000 square feet.

The expansion project is being undertaken largely to comply with the requirements of SB 1953 which obliges all hospital buildings to meet certain seismic safety requirements by a deadline.

Among other key changes that would arise from this proposal, once the expansion is complete:

• The existing main building would no longer provide general acute care services by Jan. 1, 2030.
• The women’s and children’s center may continue to provide general acute care services after Jan. 1, 2030.
• An existing daycare center totaling 7,000 square feet would no longer exist on site after the expansion is complete.

“Reconfiguration of Good Samaritan Hospital needs to consider and evaluate expansion options of the diagnostic and treatment functions, new medical offices and backfilling the existing main hospital building with ancillary support services so as to provide for a comprehensive healthcare campus,” HCA and Good Sam stated in the planning documents.

The hospital rooms in the new main medical center are likely to be considerably larger than the existing rooms.

“Currently, Good Samaritan Hospital does not have any private patient rooms,” Good Sam and HCA stated in the planning documents. “Today, private patient rooms are the norm and are now recommended” in the Facility Guidelines Institute recommendations for the design and construction of healthcare facilities.

In addition to private and bigger rooms at hospitals, operating rooms, as well as diagnostic and treatment departments, have become larger, the planning documents stated.

The project’s initial phase would be the expansion of the diagnostic and treatment functions, and to shift some support services to the existing main hospital building, the planning documents state.

Construction of the first phase of the expansion should be complete by 2029, according to the proposal.

“The proposed improvements are necessary to allow HCA to continue providing high-quality care to the community,” Cobb wrote in the project overview.

The Pacific, as the residential project is known, is deemed to be in a prime location in downtown San Jose, and has received final city approval.

CBRE, a veteran commercial real estate firm, has been hired to market the choice property. CBRE executive vice president Jef Henderson and first vice president Jon Teel are leading the sales effort. CBRE executives Andrew Behrens and Jesse Weber are providing debt and finance expertise in the selling endeavor.

“This property is in the epicenter of growth and development in downtown San Jose,” Teel said.

The highrise housing is being eyed on a property that’s a former Greyhound bus terminal on the corner of South Almaden Avenue and Post Street.

Despite the apparent advantages of the site as a housing development, the project’s principal owner and developer, Z&L Properties, has yet to break ground.

“Putting the Greyhound station site on the market and a transaction to buy it is inevitable,” said Bob Staedler, principal executive with Silicon Valley Synergy, a land-use consultancy. “If you look at their track record, Z&L just doesn’t have the wherewithal to develop properties.”

The developer’s inability to break ground fits a pattern. Z&L Properties has struggled mightily with its Bay Area property portfolio, which is located primarily in downtown San Jose and San Francisco.

The China-based company has completed just one Bay Area project, a double-tower housing highrise in downtown San Jose near San Pedro Square with roughly 640 units. Only one tower is available for occupancy.

The company has also proposed a pair of housing highrises and the revamp and rescue of a historic church at 252 N. First St. in San Jose. Neither tower has been built and the old church is covered by a tattered black tarp.

In 2021, Z&L Properties yielded ownership of one of its development sites, a 1.6-acre property near the corner of Terraine Street and Bassett Street. Z&L’s plans for a big residential tower at that location had stalled.

An alliance led by global developer Westbank, local developer Gary Dillabough, and San Jose-based Terrascape — a firm headed by real estate veterans Tony Arreola and Mark Lazzarini — paid $11.4 million for the choice Terraine Street parcel. The property is in a downtown district known as the North San Pedro neighborhood.

The Greyhound terminal site that’s up for sale has received final approval from the city for the development of 708 housing units. The property has addresses ranging from 60 to 70 South Almaden Avenue in San Jose.

The attempt to sell the Greyhound site arrives at an uncertain time for Z&L Properties.

Zhang Li, a real estate tycoon and principal executive with Z&L Properties, was detained in London in December 2022 in connection with a U.S. investigation into possible kickbacks and bribery involving a project in San Francisco.

A court in London was told last month that Zhang was wanted in the United States over an investigation into the payment of bribes to San Francisco city officials linked to the granting of permits for a project in that city.

Despite the legal turmoil that swirls around Zhang, the prospects could be favorable for the bus terminal development site.

“As one of the most dense development sites” in downtown San Jose, “this will be the future anchor of a whole neighborhood spiraling around the old Greyhound site,” said Mark Ritchie, president of Ritchie Commercial, a real estate firm.

A new owner of the Greyhound property would control a site near and next to several office towers whose occupants might want to live near their workplace.

“You don’t want to have 50,000 people coming into downtown San Jose every weekday and then 50,000 people leaving every night,” Teel, the CBRE executive, said. “You want people to be able to live, work and play downtown.”

Among the existing and future office projects in downtown San Jose that could bolster the new housing development:

• Adobe is preparing to move into a new office tower at 333 West San Fernando Street where the tech titan would employ thousands.
• An office tower at 200 Park Avenue has been completed by veteran Bay Area development firm Jay Paul Co.
• Park Habitat, a tower with offices and gardens at 180 Park Avenue, has broken ground. Global mega-developer Westbank and local developer Urban Community are working to build this project.
• A mega campus bounded by Almaden Boulevard, West San Fernando Street, South Market Street and Park Avenue has been proposed by Jay Paul.

Google continues to push ahead with its development of a new neighborhood of office buildings, homes, restaurants, shops, entertainment sites, cultural loops and open spaces near the Diridon train station and SAP Center, where the search giant could employ up to 25,000 tech workers.

“The Greyhound site is a good location for residential,” Staedler said. “A larger residential population is desperately needed in downtown San Jose.”

An estimated 675 Bay Area jobs are being lost as a result of decisions orchestrated by seven companies that are in the tech, advanced manufacturing, or biotech sectors, according to a Bay Area News Group review of official notices received by the state Employment Development Department.

Jabil; Verily Life Sciences, which is a moonshot company launched by Google owner Alphabet; Flexport; Stitch Fix; Scale AI; Arris Composites; and Janssen Pharmaceuticals are among the latest companies to reveal plans for job cuts, the EDD notices show.

In addition, another group of workers with Flagship Facilities Services, while not tech staffers, lost their jobs in Menlo Park as a result of lessened requirements by Facebook app owner Meta Platforms, according to a Worker Adjustment and Retraining Notification filed with the EDD.

Here are details of some of the most recent disclosures of Bay Area layoffs by tech or biotech firms:

• Jabil, a contract electronics manufacturer, has decided to eliminate 205 jobs in Alameda County. These include 166 job cuts in Fremont and another 39 in Livermore. The layoffs are slated to occur on March 7. “We do not anticipate that these employees will return to work in the foreseeable future,” Alicia Marjon, a Jabil human resources manager, stated in the WARN notice. These Jabil job cuts are expected to be permanent.
• Verily Life Sciences has decided to reduce staffing by 119 positions at its headquarters in South San Francisco. The company is a life sciences moonshot that was launched by Google owner Alphabet. “The separation of employment of the affected employees with the company in connection with a company-wide reduction in force is expected to be permanent and there will not be any bumping rights,” Kerrie Peraino, chief people officer with Verily, stated in the WARN letter. The Verily layoffs are due to be effective on March 12.
• Flexport, a supply-chain software startup, is cutting 120 jobs in San Francisco. The layoffs are described as “permanent,” the EDD public website shows.
• Stitch Fix, an online apparel and personal styling service, has decided to chop 97 jobs in San Francisco on a permanent basis. The layoffs are due to be effective on March 6.
• Scale AI, an artificial intelligence company, is cutting 68 jobs in San Francisco, saying the staff reductions are permanent. The layoffs began in late December and are due to occur in waves that will be complete by March 31.
• Arris Composites is cutting 65 jobs in Berkeley. Arris uses advanced technologies to help create cutting-edge products and materials for a wide range of uses. The cuts are permanent and were effective on Nov. 7 of last year. However, they were not posted until Jan. 10 of this year.
• Janssen Pharmaceuticals is cutting one job in Vacaville. The layoff is due to be effective on March 10.

“Flagship Facility Services has decided that it must permanently lay off 126 of its employees at Meta Platforms’ Menlo Park facility,” Michele Babb, a Flagship Facility vice president, said in a WARN notice to the EDD.

The company specifically provides culinary and cafeteria services to Meta Platforms. The terminations are scheduled to occur on March 6.

“The employees are represented by Unite Here! Local 19 and have bumping rights as may be provided by their collective bargaining agreement,” Babb stated in the WARN notice.

The Bay Area inflation rate in December was 4.9% as measured over a one-year period, the U.S. Bureau of Labor Statistics reported, down from 6 percent in the previous report in October.

Nationwide, consumer prices rose 6.5% during the 12 months ending in December, which was also a decline from the national inflation rate in recent months.

“For both consumers and businesses, inflation is having a very great impact,” said Patrick Kallerman, vice president of research for the Bay Area Council Economic Institute. “This slow cooling in consumer prices is what we were hoping for.”

Still, the Bay Area’s 4.9% increase in consumer prices remains far above the typical annual increase of about 2% to 3%, and it’s enough to cause pain for a lot of the region’s residents.

“Inflation hurts anybody whose income hasn’t kept up with the increase in prices, which is the case with most people,” said Stephen Levy, director of the Palo Alto-based Center for Continuing Study of the California Economy. “Inflation hurts even more if you have no savings to fall back on.”

Several categories helped to fuel December’s jump in Bay Area consumer prices. Among the biggest increases in annual prices, as reported by the labor agency:

• Electricity utility costs soared by 18.4%. Pacific Gas & Electric is the principal provider of electricity services in the Bay Area.
• Dairy products rocketed 17.4% higher.
• Natural gas was up 14.7%. PG&E has warned that gas utility costs could zoom still higher this winter due to spikes in market prices for natural gas.
• Food is costing 10.2% more on a yearly basis.
• Meat, poultry, fish and eggs cost 7.6% more than they did the year before. Anyone who has been to the grocery store recently knows that eggs, on their own, have zoomed far higher.
• Cereals and bakery items prices are up 6.3% on an annual basis.
• Household furnishings and supplies are up 4.9%

The 6.5% inflation rate for the United States is at least twice as high as the target that the Federal Reserve has set for consumer price increases as it seeks to maintain healthy growth. But it was also the slowest increase since October 2021, a pullback driven by falling gas prices and cheaper airfares.

President Biden greeted the report enthusiastically, emphasizing the role that his policies — including efforts to lower the cost of gas — have played in helping prices to climb more slowly. In remarks from the White House on Thursday, the president said that moderating inflation “adds up to a real break for consumers, real breathing room for families and more proof that my economic plan is working.”

The Fed, alarmed by the prospect of runaway inflation, has embarked on an odyssey to raise interest rates in hopes that the increases will prompt consumers to scale back borrowing and spending, creating downward pressure on prices.

“All of these rising consumer prices filter into the economy in various ways,” Kallerman said. “At some point you usually see wages respond because workers are seeking more money to spend. This creates a vicious cycle that the Fed is working hard to interrupt.”

But the central bank’s voyage toward higher interest rates could also cause businesses to cut back. Already, the Bay Area has seen multiple announcements of layoffs from major employers and tech giants.

“We’ll see a continued deceleration in job gains,” Levy said. “I wouldn’t be surprised if the Bay Area goes negative and we see job losses, with all the tech layoffs that are happening now.”

A few key items provided some relief for consumers in the region.

Gasoline prices as measured by unleaded fuel fell 5.3% in December compared with the same month the year before, according to the government report.

Costs for used cars and trucks fell by 7.5% during the one-year period that ended in December.

Some experts believe that it’s possible the Federal Reserve could navigate the nation away from soaring consumer prices but still avoid steering into a whirlpool of job losses.

“We see some movement towards layoffs, but there is nothing catastrophic yet in the job market,” Kallerman said. “This slow cooldown is the kind of landing the Fed is seeking.”

The production operation will move to Bishop Ranch 15, which has addresses that range from 12647 to 12677 Alcosta Blvd. in San Ramon.

The relocation to San Ramon is expected to occur this summer and marks another high-profile corporate departure from San Francisco.

“The studio will focus on live sports content with the facility being built with cutting-edge production technology,” the organization said. “The office is expected to welcome more than 100 staffers and freelancers on busy game days.”

The Pac-12 leased about 42,000 square feet in Bishop Ranch 15, the sports organization stated. The athletic conference owns and operates the Pac-12 Network, which features various sporting events involving member schools, as well as numerous regional channels that spotlight local teams.

The conference will shrink to 10 schools in 2024, when UCLA and USC will join the Big Ten conference as part of a wave of realignments that occured nationwide in recent years. The remaining schools, including UC Berkeley and Stanford, are currently negotiating what is expected to be a sizable new media contract, though the effect on basketball and football games previously aired on the network is unclear.

“For the Pac-12, this is not an office, it’s a studio,” said Alex Mehran Jr., president of San Ramon-based Sunset Development, the principal owner and developer of the Bishop Ranch office, retail, restaurant and hotel complex.

“They are building out a very significant studio here,” Mehran Jr. said. “This is an important brand to have for our region. It’s kind of cool to get this deal done with this kind of creative organization.”

The Bishop Ranch 15 office complex will be the new home for the Pac-12 state-of-the-art broadcast and content production facility, along with flexible workspace and meeting rooms for in-person meetings and events.

“This is the kind of creative use that you would normally have expected in San Francisco or Berkeley,” Mehran Jr. said. “Here they have a location and a setup in a place that’s safe and is in a great place to come to work.”

Bishop Ranch attracted another high-profile creative company in a sign that the business park continues to diversify its tenant basis.

In recent years, Striking Distance Studios signed a lease for space in Bishop Ranch at 6111 Bollinger Canyon Road. Striking Distance is a video game maker that developed “The Callisto Project,” a recently-released survival horror game.

Pac-12’s production studio and Striking Distance, along with other unique tenants such as The Lot cinema complex and Equinox fitness center, have landed in recent years at City Center Bishop Ranch.

City Center, by adding numerous restaurants and shops, has effectively become a downtown for San Ramon.

Bishop Ranch management also took steps to retain Chevron, a major occupant at the business park, with a deal to pay $174.5 million to buy the energy titan’s Chevron Park headquarters complex.

As part of that deal, Chevron agreed to lease nearly 400,000 square feet in the BR 2600 office complex in Bishop Ranch, a rental transaction that enables Chevron to keep its world headquarters in San Ramon.

Deals such as the Pac-12 production center are crucial in a post-coronavirus world where more than a few traditional corporate tenants are eyeing numerous ways to scale back their office space.

“With what’s happening in the office market, we are looking for a lot of different kinds of uses to be tenants at Bishop Ranch,” Mehran Jr. said.

The Oakland-area office vacancy rate was 18.6% during the October-through-December fourth quarter of 2022, according to a new report from CBRE, a commercial real estate firm.

The latest vacancy rate was up from a 17.4% level in the July-through-September third period. The Oakland area includes downtown Oakland, Oakland’s Jack London Square district, the Oakland airport area, Berkeley, Emeryville, Richmond and San Leandro.

Downtown Oakland endured the region’s highest office vacancy rate in the fourth quarter of 2022 at 25.3%, CBRE reported. That was up from 24.1% in the third quarter of 2022.

Emeryville posted a 23% office vacancy rate in the fourth quarter, which was a big jump from the 18.1% vacancy rate in that city in the third quarter.

Among other notable markets in the area: Office vacancies during the fourth quarter of 2022 were at 12.6% in Berkeley, 12.5% in Richmond and 11.7% in Oakland’s Jack London Square district.

Three markets managed to post single-digit office vacancy rates: the Oakland airport area was at 9.9%, Alameda was at 7.2% and San Leandro was at 4.1% in the fourth quarter.

Office rental rates were a bright spot in the report. Asking rates for office space in the Oakland market area were $4.52 a square foot per month during the fourth quarter, an increase from $4.50 a square foot in the third quarter.

The region’s largest office lease in the fourth quarter occurred in Alameda, where Exelixis leased 100,300 square feet at 1410 Harbor Bay Parkway.

CBRE stated that no notable office purchases occurred in the market during the final three months of the year. The real estate firm blamed macroeconomic challenges for this slowdown.

Despite the feeble purchasing activity over the final three months of the year, CBRE experts believe that buyers might emerge in more robust numbers in the next several months as prices weaken for office buildings and pressure intensifies on owners to sell their properties.

“Buyers eagerly await price discovery and distress opportunities, all of which will begin to present themselves in 2023,” CBRE stated in the report.

Those were among the unsettling takeaways in a new report about the South Bay office market that was released by the San Jose office of CBRE, a commercial real estate firm.

“The Silicon Valley office market had a slow finish to end 2022,” CBRE stated in a report that covered the October-through-December fourth quarter of last year.

The office vacancy rate in Silicon Valley was 14.1% during the final three months of 2022, which was higher than the vacancy rate of 13.6% for the July-through September third quarter of last year, CBRE reported.

“The current state of the economy impacted headcount decisions, and layoffs continued,” CBRE stated.

Despite the uncertainties, well-heeled investors bought some high-profile office buildings, especially those with big-time tech companies as the tenants.

One case in point: In October 2022, Germany-based Union Investment Real Estate GmbH and Seattle-based Metzler Real Estate Advisors teamed up to pay $222 million for a big Sunnyvale office complex that’s leased to tech titan LinkedIn. The complex has addresses of 684 W. Maude Ave., 686 W. Maude and 480 N. Pastoria Ave. in Sunnyvale.

CBRE’s survey determined that smaller office lease deals provided the primary propellant for South Bay rental activity for office space during the fourth quarter of 2022.

“Approximately 63% of the total transaction square footage came from deals under 10,000 square feet,” CBRE reported. “Notably, there were no deals signed exceeding 100,000 square feet.”

Santa Clara had the grim distinction of being the weakest South Bay office market during the fourth quarter, with a vacancy rate of 26.2%, CBRE researchers determined.

Downtown San Jose, still haunted by the side effects unleashed by government-ordered business shutdowns to combat the coronavirus, also posted a relatively high office vacancy rate of 17.4%, according to the commercial property brokerage’s survey.

The four office markets with single-digit vacancy rates during the fourth quarter were Sunnyvale, 4.7%; south San Jose, 4.9%; Cupertino, 5.2%; and Milpitas, 6.4%.

Fourth-quarter asking rents for office space came in at an average of $5.65 a month per square foot, which was unchanged from the third quarter, CBRE reported. The $5.65 figure was also unchanged from the third quarter of 2022.

“Many companies continued to evaluate their current footprints and held off on expanding,” CBRE reported. “It is expected they will defer real estate decisions as economic uncertainty continues into 2023.”

The layoffs that Salesforce has begun to orchestrate are slated to occur in San Francisco, the company stated in a WARN notice that it has sent to the state Employment Development Department.

San Francisco-based Salesforce intends to eliminate 752 jobs, all in its headquarters city, the company told the EDD.

“It is anticipated that the terminations will be permanent and will commence effective March 24, 2023,” Salesforce said in the notice, formally known as a Worker Adjustment and Retraining Notification.

Salesforce notified all of the affected employees on or around Jan. 4 that the company had decided to terminate their jobs, the tech firm told the EDD.

“We’ve made the very difficult decision to reduce our workforce by about 10%,” Salesforce CEO Mark Benioff wrote in a letter to the company’s employees.

An array of high-profile tech and biotech companies — including Facebook app owner Meta Platforms, Twitter, Cepheid and Cisco Systems — have revealed plans to chop jobs in the Bay Area in recent months and this year.

“There are no bumping rights in existence, nor are there any unions representing the affected employees,” Brent Hyder, Salesforce president and chief people officer, stated in the WARN letter. “Bumping rights” refers to the ability of senior workers to take less-senior jobs in a layoff, “bumping” those employees out of the workforce.

On Jan. 4, Salesforce announced that it had decided to chop 10% of its workforce. The notice came in a regulatory filing and in a letter to employees from the company’s chief executive officer.

Salesforce’s decision to conduct job cuts is an indication that the tech and biotech layoffs that haunted the Bay Area employment sector during the final three months of 2022 have yet to run their course.

This means that potentially 7,000 or more Salesforce workers could be losing their jobs, based on information the company had previously provided to the Securities and Exchange Commission.

San Francisco-based Salesforce, as of January 2022, employed 73,541 workers worldwide, the company stated in an SEC filing in early 2022.

This means that the termination of 752 Salesforce jobs in San Francisco represents at least 10% of the potential job losses worldwide.

In January 2022, Salesforce employed roughly 40,400 people in the United States and another 33,100 outside of this country.

If the job cuts of 10% of the workforce are distributed evenly, that could mean a loss of 4,000 jobs in the U.S. and another 3,300 jobs outside of the United States. That would then mean that the Salesforce job cuts in the Bay Area that have been revealed to this point would equate to potentially 19% of all the jobs expected to be eliminated in the United States.

The company’s top boss acknowledged that Salesforce erred by hiring workers too quickly in the wake of fevered demand by businesses and consumers for tech services and products during the coronavirus outbreak and the resulting COVID-linked lockdowns and work-from-home trends.

Salesforce miscalculated what might be the demand for its products and services once the coronavirus impacts began to ebb, Benioff said in the message, which amounted to a mea culpa.

“As our revenue accelerated through the pandemic, we hired too many people leading into this economic downturn we’re now facing,” Benioff said. “I take responsibility for that.”

“Select real estate exits and office space reductions within certain markets” are anticipated, Salesforce said in the regulatory documents filed with the Securities and Exchange Commission.

The staffing reductions are expected to be largely complete by January 2024, marking the end of the Salesforce fiscal year. The real estate exits should be complete by January 2026.

“The employees being affected aren’t just colleagues,” Benioff stated in the letter to employees. “They’re friends. They’re family. Please reach out to them.”

The proposed development would be built at 5670 Camden Ave. in south San Jose, the city planning documents show.

The affordable housing project would consist of 136 residences and a self-storage center at that location, near the corner of Camden Avenue and Blossom Hill Road.

Three educational centers — Delight Montessori School San Jose, Beacon School and Cinnabar School — are located next to the site where the development would occur.

Two development firms, Santa Clara-based Roem Corp. and Insite Property Group, based in the Southern California city of Torrance, have teamed up to float the project proposal at San Jose City Hall.

John F. Font Ph.D. Associates and Beacon School currently own the property, a Santa Clara County property database shows.

The overall project site totals 10.7 acres, which includes the existing school site and the proposed locations for the affordable homes and the self-storage center.

The Roem and Insite development alliance intends to request that the city modifies the general plan for the parcel.

The preliminary proposal on file with the city is being floated as a way to gauge feedback from city political leaders, municipal staffers and the local neighborhood.

The neighborhood where the project could rise consists primarily of single-family homes and apartment buildings, although several neighborhood retail centers are in the immediate vicinity. Westfield Oakridge Mall, Almaden Plaza and Princeton Plaza Mall are a few miles away.