Salesforce cuts 1,000 jobs as it joins Meta, Microsoft and Apple in AI pivot
Cloud-based software giant Salesforce is cutting 1,000 roles while hiring salespeople for AI, following in the footsteps of big techs like Meta, Microsoft and Apple.
Salesforce is reducing its headcount to streamline its operations, while actively looking for new roles centred on selling new AI products.
This move reflects a trend of layoffs in big techs as they focus on AI investment.
Salesforce employees have been offered opportunities to apply for other positions within the company, according to Bloomberg. However, the sector of the company that will be affected has not been disclosed.
It has also not been revealed how many of the 1,000 jobs will be in the UK.
Big Tech layoffs
The wave of tech layoffs has picked up the pace, with over 31 tech firms laying off an estimated 7,000 employees so far, according to LayoffsFYI.
Meta recently announced plans to reduce its workforce by approximately five per cent.
It said it was targeting under-performing employees as part of a performance-based review.
This move aimed to enhance operational efficiency, while refocusing its resources on initiatives such as AI development.
Microsoft also recently implemented job cuts across several divisions.
The company announced a hiring freeze in certain areas, and similarly to Meta, began performance-based layoffs.
Affected employees received immediate termination notices without severance packages.
These decisions formed part of a broader strategy to integrate AI technologies into its operations.
Amazon also cut dozens of its workers in its communications unit, as part of a new round of layoffs.
This follows two years of significant job cuts across the tech industry.
Pivot towards AI
While the reasons these layoffs vary, they come amid the AI boom.
Salesforce’s cut in headcount comes as chief executive Marc Benioff announced 1,000 paid agreements for its AI software ‘agent force’, in December.
A recent survey found that 41 per cent of global companies expect to reduce their headcount in the next five years due to AI.
Salesforce had already laid off nearly 73,000 of its workers in January 2024, whilst cutting 450 in its UK arm throughout the past year.
Chief executive Benioff also reportedly said on a podcast last month that the firm won’t hire any more engineers in 2025 due to AI productivity gains.