IBM shares plunged 25% in their steepest single-day decline since 1968 after the company issued a preliminary earnings warning that fell short of Wall Street expectations. The sharp selloff wiped out more than $100 billion in market value and erased much of the company's AI-driven gains from earlier this year.

IBM blamed weaker-than-expected results on a global memory chip shortage, saying customers redirected spending toward AI servers, storage, and memory hardware instead of software and mainframes. The warning also weighed on the broader technology sector, with software stocks declining while chipmakers and storage companies gained as investors shifted toward AI infrastructure.

IBM shares plunge 25% after shock earnings warning, ai chip shortage hits software demand

Marc Benioff, the chief executive of Salesforce, is leading a shift in how the company approaches software development. His strategy combines a pause in hiring software engineers with increased investment in artificial intelligence tools.The company stopped hiring software engineers in 2025, citing productivity gains from AI systems. At the same time, Benioff has said Salesforce could spend nearly $300 million on Anthropic AI tokens in 2026, reflecting a change in how resources are allocated.<h2>Why Salesforce paused hiring engineers</h2>Salesforce decided to halt hiring for software engineers after reporting productivity improvements of over 30 per cent using AI tools such as Agentforce. According to Benioff, these tools have allowed existing teams to complete more work without increasing headcount. This has led the company to focus less on hiring new engineers and more on improving efficiency with AI.&nbsp;However, the hiring pause applies mainly to engineering roles. The company has continued recruitment in other areas, including plans to add 1,000 to 2,000 sales staff to support its AI products.<h2>Shift towards AI-driven development</h2>Salesforce is increasing its investment in AI to support software development tasks. The planned $300 million spend on Anthropic tokens highlights how the company is using external AI systems to assist engineers. Benioff has described this shift as a move towards “digital labour”, where AI tools take on routine coding tasks while engineers focus on higher-level work.&nbsp;The company is also building systems to manage AI usage more efficiently, routing tasks between different models depending on complexity.<h2>Engineers still play a key role</h2>Despite the hiring freeze, Salesforce continues to employ around 15,000 engineers. Benioff has clarified that AI cannot replace human developers entirely. Instead, engineers are now working alongside AI systems, supervising and guiding their output. This includes reviewing code, managing AI tools and ensuring quality. This suggests a change in the role of engineers rather than a reduction in their importance.&nbsp;<h2>Salesforce’s broader AI investment strategy</h2>Salesforce has already invested over $300 million in Anthropic and holds a stake in the company. Its AI product line, Agentforce, is also growing, with reported annual revenue reaching around $800 million. The company estimates that AI now contributes to 30 per cent to 50 per cent of its overall workload, showing how central these tools have become to its operations.<h2>What this means for the tech industry</h2>Salesforce’s approach reflects a wider trend in the technology sector, where companies are focusing on AI to improve productivity rather than expanding teams. This shift could influence hiring patterns across the industry, especially in software development roles. At the same time, it highlights the growing importance of AI tools in everyday business operations.&nbsp;Salesforce is expected to continue refining its AI strategy while maintaining its current workforce structure. The company’s focus will likely remain on improving efficiency and scaling its AI systems. For the broader industry, the move signals a transition in how companies balance human talent and artificial intelligence in software development&nbsp;&nbsp;

Marc Benioff, the chief executive of Salesforce, is leading a shift in how the company approaches software development. His strategy combines a pause in hiring software engineers with increased investment in artificial intelligence tools.


Marc Benioff, the chief executive of Salesforce, is leading a shift in how the company approaches software development. His strategy combines a pause in hiring software engineers with increased investment in artificial intelligence tools. The company stopped hiring software engineers in 2025, citing productivity gains from AI systems. At the same time, Benioff has said Salesforce could spend nearly $300 million on Anthropic AI tokens in 2026, reflecting a change in how resources are allocated. Why Salesforce paused hiring engineers Salesforce decided to halt hiring for software engineers after reporting productivity improvements of over 30 per cent using AI tools such as Agentforce. According to Benioff, these tools have allowed existing teams to complete more work without increasing headcount. This has led the company to focus less on hiring new engineers and more on improving efficiency with AI. However, the hiring pause applies mainly to engineering roles. The company has continued recruitment in other areas, including plans to add 1,000 to 2,000 sales staff to support its AI products. Shift towards AI-driven development Salesforce is increasing its investment in AI to support software development tasks. The planned $300 million spend on Anthropic tokens highlights how the company is using external AI systems to assist engineers. Benioff has described this shift as a move towards “digital labour”, where AI tools take on routine coding tasks while engineers focus on higher-level work. The company is also building systems to manage AI usage more efficiently, routing tasks between different models depending on complexity. Engineers still play a key role Despite the hiring freeze, Salesforce continues to employ around 15,000 engineers. Benioff has clarified that AI cannot replace human developers entirely. Instead, engineers are now working alongside AI systems, supervising and guiding their output. This includes reviewing code, managing AI tools and ensuring quality. This suggests a change in the role of engineers rather than a reduction in their importance. Salesforce’s broader AI investment strategy Salesforce has already invested over $300 million in Anthropic and holds a stake in the company. Its AI product line, Agentforce, is also growing, with reported annual revenue reaching around $800 million. The company estimates that AI now contributes to 30 per cent to 50 per cent of its overall workload, showing how central these tools have become to its operations. What this means for the tech industry Salesforce’s approach reflects a wider trend in the technology sector, where companies are focusing on AI to improve productivity rather than expanding teams. This shift could influence hiring patterns across the industry, especially in software development roles. At the same time, it highlights the growing importance of AI tools in everyday business operations. Salesforce is expected to continue refining its AI strategy while maintaining its current workforce structure. The company’s focus will likely remain on improving efficiency and scaling its AI systems. For the broader industry, the move signals a transition in how companies balance human talent and artificial intelligence in software development

Marc Benioff, the chief executive of Salesforce, is leading a shift in how the company approaches software development. His strategy combines a pause in hiring software engineers with increased investment in artificial intelligence tools.

Salesforce CEO Marc Benioff pauses software engineer hiring as AI spending rises

Artificial intelligence-powered chatbots helped consumers purchase and return products during the 2024 holiday season, boosting online sales in the United States by nearly 4% year-over-year, according to a report by Salesforce. Watch to know more!

AI Chatbots Drive 4% Surge in US Holiday Online Sales in 2024: Report

Creatio, a popular low-code software platform that focuses on customer relationship management, in essence, is CRM, and a close rival to Salesforce, announced it had just raised $200 million in a new funding round. This capital influx rocketed Creatio into "unicorn" status with a valuation of $1.2 billion. 
&nbsp; 
Founded in 2014, Creatio has grown significantly with 700 employees based in seven global offices, including Poland and Ukraine. The customer base is a diverse array of middle to large-sized enterprises. Notable clients include Coca-Cola and MetLife. The company has yet to turn a profit despite its meteoric rise. 
&nbsp; 
The recent funding round was led by Sapphire Ventures, while StepStone Group participated in it, along with current investors Volition Capital and Horizon Capital. The new investment gives Creatio plenty of momentum off the back of several years of strong revenue growth, during which annual revenues climbed 50 per cent for the company. It previously raised $68 million in 2021 after a period of "bootstrapping" when it did not raise any external funding. 
&nbsp; 
Its founder and CEO, Katherine Kostereva, outlined how financially prudent and efficient the firm is. Creatio is cash flow break-even and capital efficient, she said. 
&nbsp; 
"Creatio's underlying low-code automation platform provides this freedom to automate your workflows on the fly," Kostereva said in an interview. 
&nbsp; 
Kostereva also expressed satisfaction with the new investment partners while underscoring that the founding team retains control over the company's strategic course: "We're very happy to have our partner investors on board, but the control over the strategy stays with the founding team," she added. 
&nbsp; 
The new funding will be ramped up in product development, particularly across generative artificial intelligence (AI). The technology is expected to improve automation in marketing and sales-related tasks, further boosting the platform's capabilities. 
&nbsp; 
While the overall market for low-code and no-code startups has cooled from a funding frenzy in 2021, Creatio makes a distinction by focusing on specific business processes, said Rajeev Dham, managing director at Sapphire Ventures. "They aren't just a general-purpose no-code platform. They are no-code with an architecturally flexible backend, while focusing on a pretty big market," Dham said. 
&nbsp; 
The strategic actions taken by Creatio with respect to niche business applications and the commitment to innovation help turn out one in the competitive landscape of low-code platforms. With its new funding, it will be able to take another step further into AI-driven automation, cementing its status as one of the major CRM options.

Creatio, a popular low-code software platform that focuses on customer relationship management, in essence, is CRM, and a close rival to Salesforce, announced it had just raised $200 million in a new funding round.

Creatio, a popular low-code software platform that focuses on customer relationship management, in essence, is CRM, and a close rival to Salesforce, announced it had just raised $200 million in a new funding round. This capital influx rocketed Creatio into "unicorn" status with a valuation of $1.2 billion. Founded in 2014, Creatio has grown significantly with 700 employees based in seven global offices, including Poland and Ukraine. The customer base is a diverse array of middle to large-sized enterprises. Notable clients include Coca-Cola and MetLife. The company has yet to turn a profit despite its meteoric rise. The recent funding round was led by Sapphire Ventures, while StepStone Group participated in it, along with current investors Volition Capital and Horizon Capital. The new investment gives Creatio plenty of momentum off the back of several years of strong revenue growth, during which annual revenues climbed 50 per cent for the company. It previously raised $68 million in 2021 after a period of "bootstrapping" when it did not raise any external funding. Its founder and CEO, Katherine Kostereva, outlined how financially prudent and efficient the firm is. Creatio is cash flow break-even and capital efficient, she said. "Creatio's underlying low-code automation platform provides this freedom to automate your workflows on the fly," Kostereva said in an interview. Kostereva also expressed satisfaction with the new investment partners while underscoring that the founding team retains control over the company's strategic course: "We're very happy to have our partner investors on board, but the control over the strategy stays with the founding team," she added. The new funding will be ramped up in product development, particularly across generative artificial intelligence (AI). The technology is expected to improve automation in marketing and sales-related tasks, further boosting the platform's capabilities. While the overall market for low-code and no-code startups has cooled from a funding frenzy in 2021, Creatio makes a distinction by focusing on specific business processes, said Rajeev Dham, managing director at Sapphire Ventures. "They aren't just a general-purpose no-code platform. They are no-code with an architecturally flexible backend, while focusing on a pretty big market," Dham said. The strategic actions taken by Creatio with respect to niche business applications and the commitment to innovation help turn out one in the competitive landscape of low-code platforms. With its new funding, it will be able to take another step further into AI-driven automation, cementing its status as one of the major CRM options.

Salesforce rival Creatio raises $200 Million to hit ‘unicorn’ Status

Salesforce plans to cut its workforce by 10% and close some offices, saying it needs to cut costs after rapid pandemic hiring left it with ‘too many people’ amid an economic slowdown.

World Business Watch: Salesforce to cut staff by 10% in latest layoffs

Cloud computing firm Salesforce announced on Wednesday that it was closing numerous offices and laying off roughly 8,000 workers, or nearly 10 per cent&nbsp;of its workforce. As the global economy enters a slump, Salesforce will now join fellow US digital giants like&nbsp;Twitter, Amazon, and Facebook-owner Meta in implementing layoffs. The California-based company claimed that last year's revenue decreased due to rife inflation and rising interest rates after experiencing excellent growth during the coronavirus pandemic.

"As our revenue accelerated through the pandemic, we hired too many people...and I take responsibility for that," Salesforce boss Marc Benioff said in a letter to employees.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/technology/from-reach-is-earned-not-bought-to-cause-based-advertising-twitter-to-lift-ban-on-political-advertising-549220">Shifting gears from reach is 'earned not bought' to 'cause-based advt', Twitter lifts ban on political ads</a>

The majority of the layoffs, according to the firm, will occur in the upcoming weeks and will cost between $1.4 billion and $2.1 billion.

Also watch |&nbsp;Gravitas: PM Sunak makes Maths mandatory for UK students

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Salesforce, a company that focuses on business software and cloud computing, claimed to have 79,000 employees worldwide as of December 2022.

This was a significant increase from the 49,000 employees in January 2020, right before the coronavirus epidemic drove office work online and gave Salesforce a substantial boost.

Following the news, Salesforce's stock increased by more than three per cent. The stock has dropped by around 44% in the last year.

(With inputs from agencies)

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Cloud computing firm Salesforce announced on Wednesday that it was closing numerous offices and laying off roughly 8,000 workers, or nearly 10 per cent of its workforce.

Cloud computing firm Salesforce announced on Wednesday that it was closing numerous offices and laying off roughly 8,000 workers, or nearly 10 per cent of its workforce. As the global economy enters a slump, Salesforce will now join fellow US digital giants like Twitter, Amazon, and Facebook-owner Meta in implementing layoffs. The California-based company claimed that last year's revenue decreased due to rife inflation and rising interest rates after experiencing excellent growth during the coronavirus pandemic. "As our revenue accelerated through the pandemic, we hired too many people...and I take responsibility for that," Salesforce boss Marc Benioff said in a letter to employees. Also read | Shifting gears from reach is 'earned not bought' to 'cause-based advt', Twitter lifts ban on political ads The majority of the layoffs, according to the firm, will occur in the upcoming weeks and will cost between $1.4 billion and $2.1 billion. Also watch | Gravitas: PM Sunak makes Maths mandatory for UK students Salesforce, a company that focuses on business software and cloud computing, claimed to have 79,000 employees worldwide as of December 2022. This was a significant increase from the 49,000 employees in January 2020, right before the coronavirus epidemic drove office work online and gave Salesforce a substantial boost. Following the news, Salesforce's stock increased by more than three per cent. The stock has dropped by around 44% in the last year. (With inputs from agencies) WATCH WION LIVE HERE:

Tech giant Salesforce joins the layoff bandwagon; fires 10% of its workforce

Sanket Atal, Managing Director of Salesforce India shares his opinion on Global Technology Summit 2022. He said that India is going to be Silicion Valley outside Silicion Valley. Watch further to know more.

"India going to be Silicion Valley", says Sanket Atal, Managing Director of Salesforce India to WION

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