Salesforce cuts jobs again as AI threat remains

AI For Business


Salesforce has laid off more employees in new layoffs, according to officials and a California regulatory notice.

The layoffs affected employees working on the company’s Agentforce AI product, Mulesoft IT integration tool and Marketing Cloud software, one of the people said. A second official confirmed the layoffs but did not provide details. The people requested anonymity to discuss sensitive matters.

The California regulatory filing, known as a WARN notice, lists 86 job cuts at Salesforce in roles including sales, administration, technology and products.

Salesforce has been hit this year with concerns that AI models, tools and agents will replace some traditional software, including the company’s flagship customer relationship management product. The stock price has fallen more than 30% this year.

Salesforce’s answer to this threat is to develop its own AI products. In November, Business Insider reported that Agentforce usage was relatively low and its capabilities fell short of the company’s demo.

Still, this flagship product has made some progress. Last month, Salesforce reported that Agentforce’s annual revenue exceeded $1 billion.

Salesforce’s layoffs follow earlier cuts in January, when the company cut fewer than 1,000 positions.

Salesforce did not respond to a request for comment. The company had more than 80,000 employees at the end of January, according to SEC filings.

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