Salesforce laid off more employees in a new round of cuts, according to a report from Business Insider and a regulatory notice in California. According to the report, the latest cuts affected employees working on Salesforce’s flagship AI platform, as well as workers in Mulesoft, the company’s IT integration business, and Marketing Cloud software.
Speaking to Business Insider, one source said the layoffs did not affect the core teams responsible for building the company’s main AI product.
Dozens of jobs eliminated in California
A California regulatory filing known as a WARN notice showed that Salesforce eliminated 86 positions in the state. The affected roles included employees working in sales, general administration, technology and product-related jobs.
According to the filing, impacted employees will remain on Salesforce’s payroll until August 7. The company’s internal severance policy provides compensation based on an employee’s role and length of service, with packages extending up to six months. Employees aged 60 and older can receive an additional four weeks of severance benefits.
The latest layoffs follow another workforce reduction earlier this year. In January, Salesforce cut fewer than 1,000 jobs as part of a separate round of restructuring. The company has not publicly commented on the newest layoffs. Salesforce remains one of the largest software companies in the world. According to a filing with the US Securities and Exchange Commission, the company had more than 80,000 employees at the end of January.
AI concerns weigh on Salesforce
The latest layoffs come during a difficult year for Salesforce. Investors are worried that advances in artificial intelligence could reduce the need for some traditional software products, including Salesforce’s core customer relationship management, or CRM, business.
Those concerns have hit the company’s stock hard. Salesforce shares have fallen more than 30% this year.
The growing popularity of AI models, automated tools and digital agents has led some investors to question whether future software will look very different from the products that have driven Salesforce’s success for decades.
Agentforce becomes Salesforce’s AI bet
To respond to those concerns, Salesforce has been investing heavily in its own AI products. The company is leaning heavily into Agentforce, a platform designed to help businesses deploy AI-powered agents and automate tasks.
Last month, the company reported that Agentforce’s annualised revenue had crossed the $1 billion mark, a milestone that suggests growing customer interest in the platform.