Salesforce Cuts Jobs Despite Hiring for AI Expansion
Salesforce Inc. is reportedly cutting jobs at the onset of its new fiscal year, affecting over 1,000 roles. The downsizing comes as the company simultaneously hires workers to market its new artificial intelligence products.
Affected employees will be eligible for internal job applications, according to an anonymous source. Salesforce, headquartered in San Francisco, declined to comment. The specific divisions impacted by the reductions remain unknown.
This move follows a wave of layoffs in the tech industry earlier this year, with companies such as Amazon.com Inc., Microsoft Corp., and Meta Platforms Inc. reducing their workforces.
Despite the job cuts, Salesforce has been actively recruiting salespeople for its AI agent product line. However, the company has also been focused on maintaining profit margins after pressure from activist investors in 2023.
"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?" said Brian Millham, Chief Operating Officer, in a December event.
Salesforce is anticipated to announce its fourth-quarter earnings in late February.