Toward the start of the year, Salesforce CEO Marc Benioff hinted at strong considerations for recruiting additional software engineers, attributing this decision to significant efficiency improvements resulting from intelligent AI systems.
It turns out that the company plans to reduce its workforce by as much as 1,000 employees (according to Bloomberg), but surprisingly, Salesforce is actively seeking to hire more staff in its sales division for the purpose of marketing their AI-driven offerings.
Salesforce hasn’t said anything about the rumored layoffs yet, making it tough to know which parts of the company might be impacted. Nevertheless, insiders connected to the firm have revealed that those let go could have the opportunity to apply for open roles within the company, possibly even in AI sales positions.
As a data analyst, I have observed that Salesforce employed approximately 73,000 individuals by January 2024. This implies that potentially around 1.36% of the company’s workforce could face job reductions due to these changes.
At a Barclays Plc gathering in December 2024, CEO Brian Millham emphasized the firm’s profit-centered approach during his speech.
Even though we’ve launched a successful new product, it doesn’t mean we disregard our prior commitments when considering growth. Instead, we’re examining all aspects of the company to find areas where we can increase efficiency and continue fueling our efforts for further scaling.
As an analyst, I’m compelled to point out that Salesforce isn’t alone in facing job reductions. In fact, Microsoft, too, has been grappling with this issue. In the initial announcement made in January, they declared a performance-driven layoff wave, affecting various sectors like security, among others, representing less than 1% of their total workforce. Subsequently, Microsoft was struck by another round of layoffs, which affected employees across departments such as security, experiences, sales, devices, and gaming.
Lately, the company has implemented a pause on new hires, which is affecting their consulting operations within the United States. This is part of a larger strategy aimed at reducing expenses.
Meta’s employees are also facing potential job reductions. Reports suggest that the company behind Facebook could be making layoffs based on performance, affecting around 5% of its workforce. As per CEO Mark Zuckerberg:
Usually, we part ways with employees who fail to meet our standards within a year. However, for this period, we’re planning to make more significant changes based on performance evaluations.
As a tech enthusiast, I’ve been pondering about a future vision that Mark Zuckerberg has sketched for Meta. In this imagined scenario, skilled mid-level AI engineers could potentially displace the role of software engineers in coding tasks.
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2025-02-05 15:10