Salesforce layoffs: 1,000 jobs shed amid AI expansion

That Salesforce is actively hiring for roles that support its AI initiatives indicates a dual approach of streamlining operations while investing in talent.
CRM software company Salesforce is laying off 1,000 employees while gearing up for the expansion of sales teams dedicated to AI-powered products.
Salesforce employs a total of 73,000 workers as of January 2024.
The company is yet to confirm to the public which departments and business lines face job cuts this financial year.
However, employees whose roles would be eliminated could apply for other positions at the company, a source familiar with the matter told Bloomberg.
Salesforce is only the latest in a string of Big Tech companies shedding jobs in early 2025. Other tech employers reportedly restructuring teams and tightening performance standards include Microsoft, Meta, Amazon and Google.
The company is also said to be under immense pressure from investors to keep healthy profit margins.
COO Brian Millham got candid about Salesforce’s commitment to delivering profits.
“Just because we have a hit new product doesn’t mean that we ignore the commitments we’ve made internally and externally as we think about scaling this business,” he said, as quoted by Bloomberg.
“We’re looking across the entire company to say, ‘Where can we get more efficiencies? How can we continue to get fuel for the work that we’re doing to go invest in scale going forward?”
Also Read: Microsoft layoffs: Were the job cuts handled poorly?
A greater focus on sales and AI-centric roles
Despite plans of culling jobs, Salesforce is set to increase headcount in its sales department as it integrates AI into its customer management software products. Among the latest advancements the company unveiled are AI agents.
In December, TechRadar reported Salesforce was preparing to hire 2,000 sales representatives for this purpose.
Other roles available at the company call for AI skills. They range from AI research scientist, finance AI architect, machine learning engineer, and senior technical AI ethicist, according to tech.co.
That Salesforce is actively hiring for roles that support its AI initiatives indicates a dual approach of streamlining operations while investing in talent.
Also Read: Google staff petition for job security amid layoff rumours
How Salesforce is adopting AI
Salesforce is expanding its use of AI, particularly through the integration of AI capabilities into its Salesforce Einstein platform.
The expansion includes the introduction of Industries AI, which provides solutions tailored to specific industry needs, enhancing operational efficiency and customer service across various sectors.
Salesforce has also developed Agentforce, a suite of customisable agents that automate business tasks, allowing for seamless integration with existing Salesforce applications.
The incorporation of AI features aims to enhance productivity by automating repetitive tasks and providing predictive analytics.
For instance, Einstein’s predictive lead scoring helps sales teams prioritise high-potential leads, purportedly increasing productivity by up to 25%.
The integration of AI tools like Einstein Bots and Einstein Voice also facilitates customer interactions and internal workflows, thereby optimising resource allocation and reducing operational costs.
Preparing Salesforce employees for the AI future
Salesforce is actively training its employees to work with AI tools through several initiatives aimed at enhancing skills and knowledge in this rapidly evolving field.
The company has launched the "AI for All" program, offering free premium AI courses and certifications through its online learning platform, Trailhead, until the end of 2025. This initiative represents a significant investment of over US$50 million aimed at addressing the growing skills gap in AI.
Salesforce believes its expansion into AI is poised to transform its product offerings and operational efficiencies while bringing about significant changes in workforce dynamics. The company is navigating job reductions alongside new hiring opportunities.