Salesforce is currently engaged in both layoffs and hiring simultaneously. The company is cutting over 1,000 jobs while simultaneously expanding its artificial intelligence (AI) team by bringing on more employees. According to Bloomberg, these new hires are necessary to support the sales of Salesforce’s new AI offerings. The specific divisions affected by the job cuts have not yet been disclosed.
However, it is confirmed that laid-off employees will have the opportunity to seek other suitable positions within Salesforce. This is not the first time Salesforce has reduced its workforce; in July 2024, the cloud-based software provider let go of approximately 300 employees. This reduction was part of an initiative to streamline operations, optimize its structure, and drive growth. This process of trimming staff followed a period of significant growth for the company, especially in Africa, where investments in AI have yielded substantial returns in countries like South Africa and Morocco.
Additionally, in November 2024, it was revealed that Own, a data management startup acquired by Salesforce for $2 billion, would soon be implementing job cuts. Reports indicated that certain roles would be eliminated by January 31, following a period of ‘harmonization,’ while other positions would be phased out over the next three months to a year, depending on the requirements during the integration process.
Salesforce’s headcount had increased significantly in recent years due to multiple mergers, which also led to a spike in expenses. A few years ago, activist investors raised concerns about the company’s acquisition spree. In response, Salesforce decided to dissolve its mergers and acquisitions team and laid off 10 percent of its workforce in 2023.
