TLDR
- Salesforce reports earnings Wednesday with $10.14 billion revenue expected (8.7% growth)
- CEO Marc Benioff eliminated 4,000 customer support roles through AI automation
- Support workforce reduced from 9,000 to 5,000 employees (44% cut)
- AI agents eliminated 100 million sales lead backlog accumulated over 26 years
- Stock trades at $256.44 with $344.62 analyst price target
Salesforce prepares for Wednesday’s earnings report following major workforce changes driven by artificial intelligence implementation. The CRM software giant faces investor questions about AI’s impact on operations and financial performance.
Analysts project $10.14 billion in quarterly revenue, representing 8.7% year-over-year growth. Last quarter, Salesforce exceeded revenue expectations by 0.8%, reporting $9.83 billion. Adjusted earnings per share are forecast at $2.78.
CEO Marc Benioff confirmed cutting 4,000 customer support positions during a recent podcast appearance. The company reduced its support team from 9,000 to 5,000 employees as AI systems handle previously human-performed tasks.
AI Replaces Human Workers Across Functions
The job cuts represent a complete reversal from Benioff’s July statements. He previously told Fortune that AI would enhance workers rather than replace them. He emphasized keeping “the human in the loop” due to accuracy concerns.
Salesforce deployed AI beyond customer support operations. The company eliminated over 100 million uncontacted sales leads built up over 26 years. AI-driven sales agents now contact every person reaching out to the company.
An “omnichannel supervisor” system oversees human-AI collaboration. This ensures tasks requiring human judgment get properly escalated. The comprehensive approach demonstrates Salesforce’s commitment to automation-driven efficiency.
Market Performance and Earnings Outlook
Salesforce stock gained 1.6% over the past month, trading at $256.44. The sales and marketing software segment rose 3.2% on average during the same period. Analyst price targets average $344.62 per share.
Peer companies show mixed earnings results. HubSpot delivered 19.4% revenue growth, beating estimates by 2.9% but dropping 5.8% post-earnings. Freshworks reported 17.5% growth, topping forecasts by 2.9% while falling 2.5%.
The 4,000 job cuts affect roughly 5% of Salesforce’s 76,000-person global workforce. This workforce reduction showcases how rapidly AI transforms corporate staffing strategies across the technology sector.
Benioff indicated no plans to expand engineering, service, or legal teams. Instead, Salesforce focuses on growing sales staff to help customers integrate AI tools into their operations.
Wednesday’s earnings will reveal how AI integration affects financial metrics. Revenue growth expectations remain steady despite operational changes. Investors will monitor commentary on future AI investments and workforce planning strategies.
