Salesforce to lay off 1,000 employees amid AI product expansion
What's the story
Salesforce, a leading customer relationship management software provider, is planning to lay off over 1,000 employees.
The decision comes as the company simultaneously recruits new staff for its expanding artificial intelligence (AI) product range.
The specific divisions affected by these job cuts have not been disclosed yet. As of January 31 last year, Salesforce had a global workforce of 72,682 employees.
The employees impacted by Salesforce's layoffs will get a chance to apply for other roles within the company.
AI success
Salesforce's AI platform secures over 1,000 paid deals
Back in December 2024 Salesforce CEO Marc Benioff announced that the company had bagged over 1,000 paid deals for "Agentforce." The platform is aimed at creating AI-powered virtual representatives.
The success of Agentforce highlights Salesforce's increasing emphasis on artificial intelligence products and services.
However, it remains to be seen how this development ties into the company's decision to lay off employees while hiring new ones for its AI product line.
Financial outlook
Previous layoffs and upcoming earnings report
Notably, this isn't the first time Salesforce has undertaken massive job cuts. In January 2024, The Wall Street Journal reported the company laid off around 700 employees.
Further, Bloomberg reported in July 2024 that Salesforce cut around 300 more jobs.
The company is due to release its quarterly earnings report on February 26, which could shed more light on these recent developments and their effect on the company's financial performance.