In a move emblematic of the tech industry’s ongoing transformation, Salesforce has confirmed 153 layoffs in San Francisco, part of a broader restructuring effort that includes cutting over 1,000 roles globally. The decision reflects the company’s strategic pivot toward artificial intelligence (AI) products and mirrors a wider trend of tech giants streamlining operations while investing heavily in emerging technologies.
The San Francisco Impact
The San Francisco-based cloud software giant filed a WARN notice with California’s Employment Development Department (EDD) last week, revealing plans to eliminate 153 positions in the city by April 25 6. Affected roles span sales, marketing, and management, with LinkedIn posts from former employees highlighting the emotional toll of the cuts. One senior designer shared her layoff experience the day after her five-year anniversary, expressing gratitude for her time at Salesforce but uncertainty about the future.
This round of layoffs follows a pattern of workforce reductions over the past two years. Salesforce cut 10% of its workforce (7,000 jobs) in 2023 and another 1,000 roles in early 2024, citing efficiency goals and pressure from activist investors.
Why the Cuts? AI and Profit Margins Drive Restructuring
Salesforce’s leadership has framed the layoffs as a necessary step to reallocate resources toward AI-driven products like AgentForce, its flagship AI agent platform. CEO Marc Benioff emphasized the need to “redirect capital from traditional roles” to fuel AI innovation, a strategy echoed by COO Brian Millham, who stressed maintaining profit margins while scaling new initiatives.
Simultaneously, the company is on a hiring spree for sales teams specializing in AI products. Analysts note this dual approach—cutting while hiring—reflects a broader industry shift. Josh Bersin, an HR consultant, criticized the move as “dysfunctional” but acknowledged the challenge of rapidly acquiring AI expertise.
Internal Mobility: A Silver Lining?
Affected employees in San Francisco and elsewhere are being offered the chance to apply for internal roles, with Salesforce listing over 800 open positions globally. However, experts like Steve Cadigan, LinkedIn’s former HR head, question whether this process avoids unnecessary disruption. “Every new hire consumes management time for onboarding… this harms productivity long-term,” Bersin noted.
Bay Area Tech Sector Feels the Pinch
Salesforce is far from alone. Over 2,000 Bay Area tech jobs have been cut in early 2025, including major reductions at Cruise (739 jobs), Workday (617), and Walmart (77) 6. The region’s tech workforce is bracing for further turbulence, with layoffs in Q1 2025 already nearing the totals of previous quarters.
Is More to Come?
The short answer: Likely. Salesforce’s layoffs coincide with its upcoming Q4 earnings report on February 26, a date analysts are watching closely for signs of further restructuring. The company’s stock rose 1.6% after the cuts were announced, signaling investor approval of cost-saving measures.
Industry experts predict continued workforce realignments as AI adoption accelerates. Cadigan warns, “We’re going to see more reductions while companies recruit for new skills”. For Salesforce, this could mean additional layoffs in non-core divisions as it doubles down on AI sales and engineering.
What Employees Need to Know
- Timing: San Francisco layoffs are set for April 25, with severance details still unclear.
- Support: Salesforce’s internal mobility program offers a lifeline, though competition for roles may be fierce.
- Trends: Tech workers across the Bay Area should brace for volatility as companies prioritize AI and automation.
The Bigger Picture
Salesforce’s restructuring underscores a painful truth for the tech sector: innovation often comes at a human cost. While AI promises efficiency and growth, the transition leaves many skilled professionals in limbo. For San Francisco—a city already grappling with tech sector downsizing—the layoffs add to a growing sense of uncertainty.
As Benioff steers Salesforce toward an AI-dominated future, the company’s ability to balance profitability with employee welfare will remain under scrutiny. For now, the 153 San Francisco employees facing job loss are a stark reminder that even industry leaders are not immune to the winds of change.
