AI is making layoffs unavoidable, says Marc Benioff as he slashes 4,000 jobs

Salesforce CEO Marc Benioff confirmed in a recent interview that his company cut around 4,000 customer support jobs as more AI agents took up the roles.

Speaking on The Logan Bartlett Show podcast, Benioff said staff numbers were reduced from 9,000 to 5,000, as Salesforce’s AI “Agentforce” bots now handle up to 50% of customer interactions.

He framed the job cuts as innovation-driven, noting that “hundreds of employees” have been redeployed to other areas of the company.

Earlier this year, Benioff told Fortune that salespeople struggle to follow up with all leads, while AI bots can manage them efficiently. He also identified two roles with high automation potential: support and sales.

The move marks a shift from Benioff’s earlier stance that AI wouldn’t cause mass firings. He is now exploring automation across “every single function.”

AI-driven layoffs are on the rise at companies
A number of companies are using the tech to increase their bottom line as AI is increasingly replacing frontline service and sales roles.

Microsoft axed 15,000 jobs this year, Meta cut 3,600 in February, and Klarna’s AI agents replaced 700 customer service staff.

Analysts and HR experts say the trend extends beyond tech, warning workers need to learn new skills to stay competitive.

Some argue that companies are using AI as a cover after pandemic overhiring.