Artificial Intelligence (AI) hit cloud-based software company Salesforce as it cut over 4000 jobs as part of business restructuring due to the dynamic disruption through the emerging technology. Confirming
the layoffs, Salesforce CEO Marc Benioff, in the Logan Bartlett podcast, said, “AI takes on a larger share of customer-facing operations”.
Benioff announced that the company reduced its support headcount by 45 per cent from 9,000 to 5,000 employees, explaining that AI agents now handle 50% of customer conversations, leaving human staff to manage the rest.
This marks a sharp shift from Benioff’s stance in July 2025, when he downplayed fears of AI-induced unemployment. Back then, he insisted AI would enhance rather than replace jobs, stressing that accuracy limits meant “humans are not going away.” He even pushed back against startup leaders warning of mass white-collar job losses.
Salesforce is expanding AI use beyond customer service to tackle a 26-year-old sales backlog. Marc Benioff revealed that the company had amassed over 100 million uncalled leads due to staffing gaps, but its new AI-driven “agentic sales” systems are now engaging every prospect. To maintain balance, Salesforce has built an “omnichannel supervisor” framework, allowing AI to hand off tasks to human agents when needed—much like Tesla’s autopilot signals drivers to take control.
Salesforce joined other US-based technology giants like Google, Microsoft, which have cut their workforce as part of cost-cutting measures on account of rising AI-driven efficiency.
Meanwhile, Tata Consultancy Services (TCS), India’s largest IT services exporter, also announced its plans to lay off around 12,000 employees—or roughly 2 per cent of its global workforce—over the course of the current financial year. The move is part of the company’s broader effort to realign its workforce strategy and position itself as a “future-ready” organisation, amid evolving technology and operational requirements.
