Salesforce cuts 1,000 jobs while expanding AI workforce
CALIFORNIA, UNITED STATES — Salesforce Inc. has announced a workforce reduction of over 1,000 roles as part of its ongoing restructuring efforts.
This move comes as the company simultaneously ramps up hiring for its artificial intelligence (AI) initiatives, particularly in sales positions supporting its AI platform, Agentforce.
The layoffs will impact approximately 1.3% of Salesforce’s global workforce of 73,000 employees as of January 2024.
While the company has not disclosed specific divisions affected by the cuts, displaced employees will have the opportunity to apply for other internal roles. This dual strategy reflects Salesforce’s focus on balancing cost-cutting measures with investments in high-growth areas like AI.
Aggressive hiring for AI sales roles
Despite the layoffs, Salesforce is actively recruiting 2,000 salespeople to support its AI-powered platform, Agentforce. Introduced in September 2024 and upgraded to version 2.0 later that year, Agentforce automates tasks across customer support, sales, and marketing.
CEO Marc Benioff has emphasized the scalability of this technology, stating that it enables productivity gains without proportional workforce increases.
The platform has already secured over 1,000 deals and is seen as a cornerstone of Salesforce’s future growth strategy. “We’re adding another couple of thousand salespeople to help sell these [AI] products,” Benioff said in December 2024.
Profitability under investor pressure
Salesforce’s restructuring aligns with broader efforts to improve profitability after facing pressure from activist investors in recent years. In response to these demands, the company has implemented a series of cost-cutting measures while focusing on boosting operating margins.
Piper Sandler previously estimated that similar layoffs could increase Salesforce’s operating margin from 21% to 25%.
Chief Operating Officer Brian Millham highlighted the company’s commitment to efficiency during a December event hosted by Barclays Plc: “We’re looking across the entire company to say, ‘Where can we get more efficiencies?’”
Tech industry trends and future outlook
The layoffs at Salesforce mirror broader trends in the tech industry, where companies like Amazon, Microsoft, and Meta have also reduced headcounts while investing in emerging technologies. Despite these cuts, Salesforce’s overall headcount may remain stable due to its aggressive hiring for AI-related roles.
The company is set to report its fourth-quarter earnings later this month, which will provide further insights into its financial performance and strategic direction. With its dual approach of workforce reductions and targeted AI investments, Salesforce aims to solidify its position as a leader in the evolving AI landscape while maintaining financial discipline.
