Salesforce lays off 86 employees amid AI competition, TechGig

Salesforce has announced the elimination of 86 positions within its artificial intelligence (AI), IT integration, and marketing divisions, according to a regulatory filing in California. The layoffs impact teams working on Agentforce, the company’s AI-focused offering, as well as its Mulesoft integration platform and Marketing Cloud business.

Roles affected include those in sales, administration, technology, and product teams. This restructuring follows a previous workforce reduction in January, which saw the company cut fewer than 1,000 jobs. As of January, Salesforce employed over 80,000 individuals, as reported in its filing with the US Securities and Exchange Commission (SEC).

The layoffs come at a time when enterprise software companies are grappling with rapid advancements in generative AI, large language models, and autonomous AI agents.

Investors have raised concerns about how these technologies might alter demand for traditional software products, including customer relationship management platforms. Salesforce’s shares have declined by more than 30% this year, reflecting broader apprehensions regarding competition and the evolving AI landscape.

Despite these challenges, the company has been heavily investing in its AI strategy, with Agentforce positioned as a key growth driver. Although earlier reports indicated adoption difficulties for the platform, Salesforce recently revealed that Agentforce has surpassed $1 billion in annualized revenue.

In addition to the layoffs, Salesforce is providing severance packages to affected US employees. According to internal policy documents, eligible workers may receive up to 30 weeks of pay based on their role, tenure, and age, along with continued healthcare coverage for qualifying employees.