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Home Careers & Skills

6 vendor giants laying off staff, and blaming it on AI

Mass vendor layoffs this year can more often than not be linked to AI

Oxygen staff by Oxygen staff
3 September 2025
in Careers & Skills, Indepth, Vendor
6 vendor giants laying off staff, and blaming it on AI
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1. Salesforce

Roles cut: 4,000

Why: Agentic AI usurping customer service tasks

Salesforce's Atlanta tower

Deploying AI agents has enabled Salesforce to cut its customer support headcount from 9,000 to 5,000, CEO Marc Benioff revealed in a podcast aired last week.

The revelation comes just a month after Benioff waved off fears of AI-driven job losses.

In last week’s podcast, Benioff also talked about how Salesforce is using AI agents to transform its sales efforts.

“There were more than 100 million leads that we have not called back at Salesforce in the last 26 years because we have not had enough people,” he said.

“But we now have an agentic sales that is calling back every person that contacts us.”

Marc Benioff, Salesforce
Salesforce CEO Marc Benioff

Benioff’s comments echo those made recently by Bill McDermott, his opposite number at ServiceNow.

Over 80% of ServiceNow’s supporting functions, including IT support, are now being done by agents, McDermott said on an earnings call in July.

Reports of Salesforce’s plans to lay off 1,000 staff back in February also linked the cutbacks to its efforts to invest in AI.

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