In a recent episode of the podcast "20VC with Harry Stebbings," Salesforce founder and CEO Marc Benioff revealed that the company will stop hiring new software engineers by 2025. This decision is primarily due to the significant productivity boost of over 30% achieved by the engineering team through its flagship AI product, Agentforce, and other AI technologies.
When discussing the employee size over the next five years, Benioff stated that while there will be no increase in software engineers, Salesforce's overall workforce may still grow. He mentioned that although the demand for engineers has decreased, the efficiency of the engineering team has significantly improved due to the application of AI technologies, resulting in incredible work speed. Furthermore, he noted that there will be a reduction in support engineers next year, while the number of sales personnel will increase, as the company needs more sales teams to communicate the value of AI to customers.
Agentforce has become the current focal point of Salesforce's business, with Benioff emphasizing, "At Salesforce, everything must revolve around Agentforce; it is the only thing that matters right now." He mentioned that this AI platform plays a crucial role in enhancing operational efficiency and customer service. As early as December, the Salesforce Ben team tested Agentforce, and while the effectiveness varied based on users' experience levels, it provided some assistance to a certain extent.
However, as 2024 approaches, Salesforce employees are also facing some anxiety. The company underwent significant layoffs in 2023 and early 2024, reducing its workforce by 700 and 7,000 employees respectively, leading to considerable employee concerns. Benioff acknowledged in a letter that the current layoffs are one of the economic challenges the company must confront due to having over-hired during the pandemic.
Although Benioff mentioned that Salesforce might expand over the next five years, employees remain uneasy about the possibility of repeating the layoffs of the past two years in 2025. With the rapid advancement of AI technology, it remains to be seen what the future holds for Salesforce employees amid this transformation.
Key Points:
🌟 Salesforce will stop hiring software engineers by 2025 due to productivity improvements from AI technology.
💼 The company plans to increase sales personnel to explain the value of AI to customers.
📉 In recent years, the company has experienced multiple layoffs, leaving employees feeling anxious about the future.
