Salesforce Cuts Jobs to Focus on Productivity Amidst AI Hiring Spree
Salesforce Inc. has initiated job cuts as it enters its latest fiscal year, sources report. This move comes as the company continues to hire new employees to promote its artificial intelligence products.
Over 1,000 roles are expected to be impacted by these reductions. Impacted employees will be eligible to apply for internal positions. Salesforce has not provided an official statement regarding the cuts or specified which divisions will be affected.
As of January 2024, Salesforce employed approximately 73,000 individuals. The tech industry has become increasingly accustomed to regular job reductions, with major companies like Amazon, Microsoft, and Meta implementing workforce trims earlier this year.
Salesforce shares experienced a 1.6% surge on Tuesday morning in New York. Analysts suggest that the cuts reflect the company's focus on enhancing productivity and mitigating expenses incurred by recent sales hiring.
Despite the job cuts, Salesforce remains actively engaged in hiring sales personnel to support the launch of its AI agent products. However, the company is also prioritizing profit margin maintenance following pressure from investors in 2023.
"We are committed to scaling our business while honoring our internal and external obligations," said Chief Operating Officer Brian Millham. "We are evaluating the entire company to identify opportunities for efficiency gains and allocate resources to support our future growth."
Salesforce is anticipated to release its fourth-quarter earnings report towards the end of February.