Salesforce cuts jobs across sales, tech and operations as AI strategy evolves

Salesforce has carried out another round of job cuts affecting employees across sales, technology and operational functions, according to original reporting by Business Insider and a regulatory filing in California.

The latest reductions come as the cloud software company continues to reshape its business around artificial intelligence, while navigating investor concerns about the long-term impact of AI on traditional enterprise software.

According to Business Insider, the layoffs affected employees working on Agentforce, Salesforce’s AI platform, as well as teams associated with MuleSoft, its integration software business, and Marketing Cloud. Sources familiar with the matter told the publication that the reductions did not affect the core Agentforce teams.

Workforce reductions span multiple functions

A California Worker Adjustment and Retraining Notification (WARN) filing disclosed 86 job cuts in the state across roles in sales, general administration, and technology and product functions.

Business Insider reported that the workforce reductions were not limited to California. Sources familiar with the matter said employees in Washington state and outside the United States were also affected.

Key details reported include:

• 86 positions eliminated in California, according to a WARN notice.

• Employees affected by the California cuts will remain on payroll until 7 August.

• Salesforce’s severance policy provides compensation based on employee level and tenure, extending up to six months in some cases.

• Employees aged 60 and above may receive an additional four weeks of severance.

• The company had more than 80,000 employees at the end of January, according to a filing with the US Securities and Exchange Commission.

Salesforce did not respond to Business Insider’s requests for comment.

AI transition continues to reshape priorities

The latest workforce reductions arrive as Salesforce accelerates investments in artificial intelligence amid a rapidly changing enterprise software market.

The company has faced growing scrutiny from investors and analysts over whether AI-powered tools and autonomous agents could eventually reduce demand for some conventional software products, including customer relationship management platforms that have historically been central to Salesforce’s business.

Those concerns have weighed on investor sentiment. Salesforce shares have fallen by more than 30% this year, according to Business Insider.

In response, Salesforce has increasingly positioned AI as a core growth driver. The company has invested heavily in Agentforce, its platform designed to help businesses deploy AI agents across customer service, sales and operational workflows.

Agentforce gains momentum despite questions over adoption

The workforce cuts come against a backdrop of mixed signals around Salesforce’s AI strategy.

Business Insider previously reported in November that Agentforce adoption appeared lower than expected and that some customers viewed its capabilities as falling short of demonstrations presented by the company.

However, Salesforce has since highlighted growing commercial traction for the platform.

Last month, the company disclosed that Agentforce annualised revenue had surpassed $1 billion, marking a significant milestone for one of its most strategically important products.

The development suggests Salesforce is continuing to prioritise investment in AI-led growth even as it reassesses workforce requirements across other parts of the organisation.

Second round of cuts this year

The latest reductions follow an earlier restructuring announced in January, when Salesforce eliminated fewer than 1,000 roles.

Taken together, the two rounds of layoffs indicate that workforce adjustments remain part of Salesforce’s broader effort to balance costs, redirect resources and support strategic priorities centred on artificial intelligence.

As enterprise software companies increasingly reconfigure operations around AI products and services, Salesforce’s latest move highlights how workforce planning is evolving alongside technological change. The company’s next challenge will be translating AI momentum into sustained business growth while maintaining confidence among employees, customers and investors.