Salesforce Cuts Over 1,000 Jobs While Hiring for AI Sales

Salesforce, the leading customer relationship management (CRM) software maker, is cutting more than 1,000 jobs, Bloomberg reports. The layoffs, affecting various divisions within the company, come as Salesforce simultaneously hires salespeople to promote its new AI products.

The news, confirmed by a source familiar with the matter, indicates a strategic shift toward cost optimization and profit margin improvement for the San Francisco-based tech giant. A Salesforce representative declined to comment on the specific divisions affected by the job cuts.

The job reductions come amidst a recent trend of cost-cutting measures by several prominent technology companies. Amazon, Microsoft, and Meta have all announced layoffs in recent months as these companies navigate economic uncertainty.

Salesforce, however, is simultaneously increasing hiring in its AI department, reflecting its significant investment in this burgeoning sector. The company is actively recruiting sales professionals to promote its new AI agent products, signaling a major focus on expanding this segment of its business.

The company's Chief Operating Officer, Brian Millham, acknowledged the dual priorities of investment and cost control during a December event hosted by Barclays Plc. He emphasized that while AI product launches are positive, the company remains committed to internal and external pledges related to scaling the business while simultaneously maximizing efficiency and profitability.

Salesforce, which had approximately 73,000 employees as of January 2024, is expected to report its fourth-quarter earnings in late February. The report is anticipated to shed further light on the company's financial performance and strategic priorities.