Salesforce cuts 4,000 jobs, acknowledges AI's impact on workforce

Salesforce has reduced its workforce by 4,000 employees. CEO Marc Benioff confirmed the cuts, noting they were primarily in the company's customer support division. He stated on a podcast that the support staff was reduced from 9,000 to 5,000 because AI agents can now handle a significant portion of customer interactions. Benioff pointed out that AI agents currently manage about 50% of all customer conversations, allowing the company to "rebalance" its human capital.

This move is part of a broader shift in Salesforce's strategy to prioritise AI-driven growth. The company has integrated its AI platform, Einstein, into its core products to automate tasks previously performed by humans. Beyond customer support, AI agents are also being deployed in sales operations, where they are addressing a backlog of over 100 million uncalled sales leads.

The broader market and strategic context

The Salesforce decision is a clear example of a growing trend among enterprise software companies. AI is not just a tool for productivity; it is changing business models. For CXOs and policymakers, this is a signal that AI is moving from a theoretical concept to a direct driver of corporate restructuring. The shift automates routine tasks, which enables companies to serve more customers with a smaller human workforce. This trend directly impacts job roles in customer service, sales, and marketing.

While this specific reduction represents about 5% of Salesforce's total global workforce, it highlights a critical development in the labour market. The demand for roles focused on repetitive tasks is decreasing, while the need for employees who can manage, train, and collaborate with AI systems is growing. This creates a skills gap that policymakers and educational institutions must address to prepare the workforce for an AI-centric economy.

A shift in stance

The recent job cuts mark a shift in tone for Salesforce's leadership. Just months prior, Benioff stated that AI would augment workers rather than replace them, arguing that "the humans are not going away." This change shows how quickly AI capabilities are developing and how fast companies are moving to implement them.

The company's focus is now on developing what it calls "Agentforce," a sales team augmented by AI. This strategy aims to improve productivity and close more deals by having AI agents handle the initial outreach and lead qualification, freeing up human sales representatives to focus on more complex interactions and relationship-building.

The layoffs at Salesforce serve as a case study for the entire enterprise software industry. It demonstrates that the promise of AI-driven efficiency is now translating into tangible business outcomes, even if it comes with the consequence of a leaner workforce.