In a recent statement, Salesforce CEO Marc Benioff revealed that the company will not be hiring any new software engineers in 2025, citing the impressive productivity gains driven by artificial intelligence (AI). According to Benioff, the company has seen more than a 30% increase in productivity this year, thanks to the implementation of AI technologies like Agentforce. These advancements have significantly accelerated the company’s engineering capabilities, making it unnecessary to expand the software engineering team for the upcoming year. Furthermore, Salesforce also plans to reduce the number of support engineers, due to the integration of an AI-driven “agentic layer.”
AI’s Role in Driving Productivity
Salesforce’s announcement underscores a significant trend in the tech sector: AI’s ability to enhance productivity and efficiency. Solutions like Agentforce are optimising workflows, allowing software engineers to achieve greater results with fewer resources. The 30% productivity increase highlighted by Salesforce exemplifies how AI is transforming business operations, especially in fields that have historically relied on human labour.
Salesforce’s decision to pause hiring and reduce certain roles follows a series of workforce adjustments in recent years. In 2024, the company laid off 700 employees, which came after an initial reduction of 10% of its workforce in 2023. While these layoffs reflect broader economic challenges, they also underscore a shift in how companies are adapting to technological advances, particularly in AI.
Workforce Adjustments and Layoffs Across the Industry
This trend is not unique to Salesforce. Many organisations are reevaluating their staffing needs in response to the growing impact of AI. Klarna, a global payments provider, recently announced that it had stopped hiring human employees altogether, citing the advanced capabilities of AI. Klarna’s CEO emphasised that AI could already perform many of the tasks that were traditionally handled by humans, leading the company to halt its hiring process over a year ago.
The Broader Impact of AI on Tech Jobs
The growing role of AI in business operations is reshaping the tech job landscape. As AI technologies become increasingly capable of performing tasks traditionally carried out by humans, companies are rethinking their hiring strategies. In some cases, this has led to workforce reductions, as roles that were previously essential to operations are now being automated.
However, AI’s rise also creates new opportunities. As AI takes over more routine tasks, human workers can shift their focus to higher-level activities that require creativity, strategic thinking, and emotional intelligence. While some roles may be replaced, others will evolve, and new types of jobs may emerge, particularly in areas where human oversight, judgement, and innovation remain irreplaceable.
