Salesforce layoffs hit Agentforce AI teams weeks after announcing $1.2 billion in AI revenue

Last Month, Salesforce Announced It Hit $1.2 Billion in AI Revenue -- Now It's Laying Off Staff Tied to the Product

The tech industry continues to undergo layoffs. Today, news broke that Salesforce is laying off employees tied to Agentforce, its flagship AI product. The move comes just days after CEO Marc Benioff said AI was helping the company ship more code -- without hiring more engineers. The layoffs affected employees working on Agentforce, MuleSoft, and Marketing Cloud, according to Business Insider, which first reported the change. A California WARN notice listed 86 eliminated positions across sales, general administration, and technology and product roles. Salesforce has not disclosed how many Agentforce employees were affected, what jobs they held, or whether AI-related productivity gains contributed to the cuts. Agentforce lets businesses deploy AI agents to handle a variety of tasks, including those associated with sales and customer service. The product is central to Salesforce's effort to capture demand for AI tools. Recently, investors have started to question whether those same tools could weaken the market for traditional business software, something Salesforce is known for.

Salesforce cuts more jobs amid AI concerns - Business Insider By Investing.com

Investing.com - Salesforce (NYSE:CRM) laid off employees in a new round of cuts, according to reporting from Business Insider, citing people familiar with the matter and a regulatory notice in California. The cuts affected employees working on the company's Agentforce AI product, its Mulesoft IT integration tool, and its Marketing Cloud software, one of the people said. A second person confirmed job cuts without providing specific details. A regulatory filing in California, known as a WARN notice, listed 86 Salesforce job cuts in roles such as sales, general administration, and technology and product, according to Business Insider. The latest job cuts follow an earlier round of layoffs in January when the company eliminated fewer than 1,000 roles. Salesforce has been hit this year by concern AI models, tools and agents could replace some traditional software, including the company's main customer relationship-management offering. The stock is down 36% this year, made greater by a 5.5% drop today. The company had more than 80,000 employees at the end of January, according to an SEC filing. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Salesforce lays off more employees across teams, AI to takeover: Report

The layoffs impacted workers involved with Agentforce, teams working on Mulesoft and Marketing Cloud software. Salesforce has reportedly laid off more employees in a fresh round of job cuts. The cuts affected employees across several teams. For those unaware, Salesforce eliminated fewer than 1,000 jobs in January this year. According to a Business Insider report, citing people familiar with the matter, the latest round of layoffs impacted staff involved with Agentforce, Salesforce's AI-powered product, as well as teams working on Mulesoft, the company's IT integration platform, and Marketing Cloud software. A regulatory filing in California also sheds some light on the layoffs. The filing, known as WARN notice, listed 86 job cuts which affected roles in sales, general administration and technology and product. Also read: Anthropic launches Claude Fable 5, a safer Mythos AI model: Features, availability and how to use it The latest job cuts come at a time when the tech industry is adopting AI aggressively. Many companies are investing heavily in AI tools and software, which are designed to automate tasks. Salesforce has also been facing growing concerns that advanced AI systems and digital agents could reduce the need for some traditional software products, including customer relationship management (CRM) tools, which have long been the company's core business. To stay competitive, Salesforce has been developing its own AI offerings. One of its biggest bets is Agentforce. However, earlier reports suggested that customer adoption of Agentforce was slower than expected and that some of its capabilities did not fully match the demos shown by the company. Despite those concerns, Salesforce has recently reported progress for the AI product. Last month, the company reported that Agentforce had crossed $1 billion in annualised revenue. Also read: Starlink India launch reportedly on hold over security concerns: Here is what happened Meanwhile, last week, it was reported that Google had laid off employees across its Cloud division as the tech giant continues to invest heavily in AI. One of the impacted teams was Google's Threat Intelligence Group. For those unfamiliar, Threat Intelligence Group is a leading security division which is known for tracking cyber threats and publishing research on hackers and state-sponsored cyberattacks. Other teams within Google Cloud and Mandiant, the cybersecurity company acquired by Google in 2022, were also affected by the layoff.