Salesforce Cuts Jobs While Hiring for AI Products
Amidst ongoing fiscal year, Salesforce is implementing job reductions impacting over 1,000 roles. Despite the layoffs, the company remains committed to hiring for its new artificial intelligence agent products.
Displaced employees will be eligible to apply for internal positions. Salesforce currently employs approximately 73,000 individuals.
The job cuts align with the increasing trend of layoffs in the technology industry, which saw significant downsizing at major companies like Amazon, Microsoft, and Meta early this year.
Salesforce, known for its customer management software, has expanded its sales team to focus on their new AI products. However, the company is also prioritizing profit margins, as it faced pressure from activist investors in 2023.
"We're looking across the entire company to identify areas for efficiency and fuel our ongoing investments," said COO Brian Millham on the company's profitability emphasis.
Salesforce is anticipated to release fourth-quarter earnings towards the end of February.