Salesforce is reducing its workforce by over 1,000 positions while simultaneously recruiting salespeople to support its artificial intelligence initiatives, marking a strategic shift in the company's personnel focus.
The San Francisco-based software giant, which employs approximately 73,000 people, will allow affected employees to apply for other positions within the organization. The specific departments impacted by these cuts have not been disclosed by the company.
This workforce adjustment comes as Salesforce pushes forward with Agentforce, its enterprise AI system that enables companies to build and deploy AI agents for automating business tasks. In December, CEO Marc Benioff announced that Salesforce had secured more than 1,000 paid deals for the Agentforce platform.
The company's Chief Operating Officer Brian Millham emphasized that despite having successful new products, Salesforce remains committed to maintaining efficiency and profitability. Speaking at a Barclays event, Millham highlighted the importance of finding operational efficiencies while scaling the business.
The restructuring reflects broader trends in the technology sector, where companies are balancing traditional operations with investments in AI capabilities. Salesforce reported strong financial performance in its third quarter, with revenue reaching $9.44 billion, representing an 8% increase year-over-year.
This move follows similar patterns across the tech industry, where companies are realigning their workforce to accommodate the growing emphasis on AI technologies while maintaining operational efficiency.
The latest job cuts at Salesforce demonstrate the company's strategic focus on AI development while managing costs and responding to pressure from activist investors to maintain profit margins.