Salesforce laid off 93 employees in Washington state, according to a notification filed Wednesday with the state’s Employment Security Department, as the company continues reshaping its workforce around artificial intelligence capabilities.
The San Francisco-based cloud software company has offices in Seattle and Bellevue but did not specify which roles were eliminated. “We continuously assess our structure and rebalance as needed to best serve our customers and fuel growth areas,” a spokesperson said.
Salesforce employs more than 3,000 people in the Seattle area, according to LinkedIn data. The company provides cloud-based customer relationship management tools and other business software services.
The layoffs coincide with CEO Marc Benioff’s recent statements about AI-driven workforce reductions. In a podcast interview last week, Benioff revealed the company had eliminated 4,000 customer support positions from a previous workforce of 9,000, citing new efficiencies gained through AI automation.
Benioff also announced this summer that up to half of Salesforce’s work is now performed using AI tools. However, the company has not confirmed whether the Washington state cuts are related to the customer support reductions or represent separate operational changes.
The cuts follow a pattern of regional workforce reductions. Salesforce previously laid off roughly 10 percent of its Seattle-area employees in January 2023. The company has also significantly reduced its physical footprint since acquiring Seattle-based Tableau for $15.7 billion in 2019, exiting office space in the Fremont neighbourhood.
Salesforce reported 10 percent revenue growth to $10.2 billion in its fiscal second quarter earnings released Wednesday. However, the company’s stock fell 5 percent in after-hours trading due to weak revenue guidance for upcoming quarters.
The layoffs reflect broader trends affecting Seattle’s technology sector. Oracle, Rec Room, F5, Microsoft, and T-Mobile have all reduced staff this summer in the region as companies balance AI investments with operational efficiency goals.
Benioff has positioned Salesforce as a leader in AI-powered business tools whilst criticising competitor Microsoft’s artificial intelligence initiatives. The company has rolled out its Agentforce platform as an alternative to Microsoft’s offerings, highlighting the competitive dynamics shaping both companies’ strategies in the Seattle market.
