Salesforce lays off employees in a new round of cuts

Salesforce has initiated another wave of layoffs as part of its ongoing strategy to adapt to changing market dynamics, according to sources familiar with the situation and a regulatory notice in California. The latest cuts have impacted teams involved with the company's Agentforce AI product, Mulesoft IT integration tool, and Marketing Cloud software. A regulatory filing, known as a WARN notice, revealed that 86 positions were eliminated across various departments, including sales, general administration, and technology. The layoffs come as Salesforce faces heightened scrutiny over the potential for AI-driven models and tools to replace traditional software offerings, including its flagship customer relationship management (CRM) platform. As a result, Salesforce's stock has plummeted by over 30% this year. In response to these challenges, Salesforce is focusing on bolstering its own AI capabilities. Despite reports indicating that the use of Agentforce has been underwhelming, the product has recently achieved an annualized revenue exceeding $1 billion. The latest job cuts follow a previous round of layoffs in January, where the company reduced its workforce by fewer than 1,000 roles. As of the end of January, Salesforce employed more than 80,000 individuals. The company has yet to provide a public comment regarding this latest development.