Salesforce is extending its San Francisco workforce reductions into the fall even as the software company increasingly describes artificial intelligence as a tool for raising productivity and reshaping how its employees work.
A previously disclosed reduction affecting 86 employees at Salesforce Tower became effective Friday, according to California WARN data compiled from state filings. A separate, more recent filing schedules another 74 San Francisco positions for elimination beginning October 5. Together with 51 positions eliminated in May, Salesforce has now disclosed WARN actions affecting 211 San Francisco workers in 2026.
The newest 74-worker reduction includes 37 technology and product positions, 34 general administration positions, and three sales and distribution jobs, the San Francisco Chronicle reported from the state filing. The 86-worker round consisted of 63 technology and product jobs, 21 general administration positions, and two sales and distribution roles.
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Salesforce has not publicly attributed either WARN action to artificial intelligence.
Its own financial disclosures, however, show that workforce restructuring and AI-enabled efficiency are moving through the company at the same time.
In its quarterly filing with the SEC, Salesforce said restructuring programs designed to improve operating margins have included workforce reductions, along with reductions in office space and data centers. The company separately said it expects sales and marketing expenses to decline as a percentage of revenue partly through greater sales productivity, “which includes the use of AI and agents.”
Salesforce recorded $80.0 million of restructuring expense during the three months ended April 30, up from $36.0 million a year earlier. Those costs primarily covered employee transitions, severance, and benefits.
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As of April 30, the company also expected another $130.0 million to $150.0 million of future cash payments related to restructuring initiatives, primarily workforce costs such as severance.
That restructuring is occurring while Salesforce reports stronger financial results. Revenue increased 13% year over year to $11.1 billion in its fiscal first quarter, while operating income rose to $2.35 billion from $1.94 billion.
Agentforce is also becoming a larger commercial business. Salesforce said Agentforce annual recurring revenue surpassed $1.0 billion during the quarter, while combined Agentforce and Data 360 annual recurring revenue reached $3.4 billion. The company reported 3.8 billion Agentic Work Units delivered for customers.
Internally, Salesforce has been more explicit about AI changing staffing requirements. The company said in April that Agentforce had handled 2.6 million customer support conversations with a 63% resolution rate after its deployment on Salesforce’s support site. Salesforce said it had since redeployed hundreds of support engineers into other parts of the company while managing headcount partly by not backfilling other positions.
Salesforce described the broader strategy in January as redesigning workflows, reskilling employees, and “redeploying and rebalancing” its workforce around human-AI collaboration.
“The Agentic Enterprise is not only a technology transformation,” CEO Marc Benioff said. “When humans and agents work together, it radically transforms the structure of your company.”
Business Insider reported in June, citing unnamed sources, that the 86-worker round included employees working on Agentforce, MuleSoft, and Marketing Cloud, although the publication said the core Agentforce team was unaffected.
