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Salesforce, a prominent cloud computing company, has announced a hiring freeze for software engineers in 2024, attributing it to a 30 per cent productivity increase achieved through its artificial intelligence (AI) tools, including Agentforce. CEO Marc Benioff, speaking on the “20VC with Harry Stebbings” podcast, emphasized the remarkable impact AI has had on the company’s engineering team, stating that the productivity boost has made additional engineering roles unnecessary at present.
The advancements in AI technology have enabled Salesforce to reduce its need for new hires, with plans to rely more on AI-powered tools rather than expanding its software engineering team. Despite the hiring freeze, Salesforce intends to add 1,000 to 2,000 sales roles shortly, indicating a strategic focus on business growth while utilizing AI to address technical and operational challenges.
According to a report by The Economic Times, Arundhati Bhattacharya, Chairperson and CEO of Salesforce India, reiterated the view that AI will complement, not replace, jobs. She explained that AI can take on repetitive tasks, allowing workers to concentrate on more complex responsibilities. Bhattacharya also noted that AI could help organisations overcome workforce limitations due to time and resource constraints. While AI is seen as a driver of efficiency at Salesforce, Bhattacharya assured that it would not lead to widespread job losses, but rather shift employment opportunities towards more strategic roles.
Salesforce has been expanding rapidly in India, doubling its workforce in recent years. However, as AI adoption grows, the company’s hiring strategies may continue to evolve. This AI-driven productivity strategy reflects a broader trend in the tech industry, where AI is not only transforming workflows but also reshaping how businesses approach talent and resource allocation.