The tech world is witnessing another seismic shift as Salesforce continues its restructuring efforts, this time cutting 262 jobs from its San Francisco headquarters. CEO Marc Benioff is positioning artificial intelligence as a transformative force, simultaneously reducing workforce and highlighting AI’s growing capabilities.

In a recent filing with California officials, Salesforce detailed the layoffs across multiple departments: four workers in Sales and Distribution, 97 in General Administration, and 161 in Technology and Product. The cuts are not limited to San Francisco, with an additional 93 workers set to be laid off in Washington state.

Benioff’s recent comments reveal a strategic pivot towards AI-driven customer support. He candidly shared that he has reduced support team headcount from 9,000 to approximately 5,000, citing AI’s ability to maintain customer satisfaction levels comparable to human agents. Despite earlier dismissing AI job displacement concerns as “alarmist,” the CEO now frames these changes as part of transforming Salesforce into a “modern Agentic Enterprise”.

The layoffs come amid a broader tech industry trend of using AI to streamline operations and reduce labor costs. Benioff attempts to soften the impact by emphasizing the company’s commitment to internal mobility, stating they are “working to ensure the vast majority of employees find new opportunities to thrive”.

This latest development underscores the complex relationship between technological innovation and workforce dynamics. As AI continues to evolve, tech workers find themselves navigating an increasingly uncertain professional landscape, where skills adaptability becomes crucial for survival.

Salesforce’s spokesperson framed the restructuring as a necessary strategy to “best serve our customers and fuel growth areas,” highlighting the ongoing tension between technological efficiency and human employment in the rapidly changing tech ecosystem.