AI and Job Cuts in the Tech Sector

Amid widespread layoffs in the global technology industry, Salesforce CEO Marc Benioff has countered the prevailing idea that artificial intelligence (AI) is the main cause of job losses.

AI Is Not the Sole Reason for Job Cuts

While appearing on Matt Berman’s show The Future Live, Benioff remarked that attributing layoffs solely to AI is “overly simplistic,” suggesting that many leaders use this narrative as an easy explanation.

Benioff expressed that there is a lack of understanding regarding the complexities of the situation. He stated that it is “too easy” for some CEOs to point fingers at AI as the culprit, describing it as a lazy excuse.

Different Reasons for Layoffs

He cautioned against the tendency to categorize all layoffs as AI-driven, highlighting that the motivations for reducing staff can differ significantly.

Some firms, according to Benioff, are making job cuts due to prior financial commitments tied to data centres. Others are reorganising their teams to better adapt to new technological realities, particularly in relation to AI advancements.

Benioff asserted that oversimplifying the situation obscures the true landscape. He cautioned, “If you lump all these companies together, you’re committing a fundamental error, I think, in business.”

Rebalancing Workforce Instead of Halting Hiring

At Salesforce, Benioff referred to the recent changes in staffing as part of a wider restructuring strategy rather than a retreat from hiring practices.

He described it as an uncomfortable yet necessary period over the last five years for rebalancing their workforce, noting that they have “achieved a new record number of employees, exceeding 83,000.”

While he acknowledged the productivity benefits provided by AI, he emphasised that human talent continues to be essential. He stated that their engineering teams are “probably over 30% more productive,” yet clarified that they are “not yet at that level of AI capability.”

Benioff also shared that Salesforce remains committed to hiring actively, especially in engineering and sales, stressing the urgent need for that talent, highlighting ongoing recruitment for interns and graduates.

Ongoing Layoffs in Big Tech

Benioff’s comments come during an ongoing wave of layoffs in the tech sector, with Oracle leading the trend by letting go of thousands of employees across various roles.

In India, nearly 12,000 employees have reportedly faced job losses, marking this as one of the most significant workforce reductions seen in recent times.

Reports indicate that affected employees were notified via an early morning email on March 31, which stated: “We have made the decision to eliminate your role as part of a broader organisational change. Today is therefore your last working day.”

Earlier this year, Amazon announced intentions to cut approximately 16,000 corporate positions, following an earlier reduction affecting 14,000 employees. Moreover, Meta has recently laid off hundreds of staff members.

As per statistics from layoff tracker Layoffs.fyi, a total of 71,447 employees across 80 tech companies have been laid off in 2026.