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Salesforce cut its support team from 9,000 to 5,000 and AI is now blamed for 50,000 job cuts this year

Salesforce cut its support team from 9,000 to 5,000 and AI is now blamed for 50,000 job cuts this year

Salesforce cut its support team from 9,000 to 5,000 and AI is now blamed for 50,000 job cuts this year Photograph: (X)

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Companies have announced close to 50,000 job cuts explicitly linked to AI in 2026 — roughly 17 per cent of about 300,000 total. AI is now cited in 13 per cent of US layoffs, up from 4.5 per cent last year, and more than 316,000 jobs have been cut citing AI or automation since early 2023. Salesforce reduced its support staff from 9,000 to 5,000 using AI agents.

The argument about whether artificial intelligence takes jobs has moved past the theoretical stage. Companies are now naming it as the reason in their own layoff announcements, and the count is rising sharply.

The Numbers

Close to 50,000 job cuts announced in 2026 have been explicitly linked to AI — roughly 17 per cent of the approximately 300,000 total announced this year.

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The trend line matters more than the absolute figure. AI has been cited in 13 per cent of US layoffs year-to-date, up from 4.5 per cent in 2025 — close to a tripling in the share of job cuts companies attribute to the technology. Since early 2023, more than 316,000 jobs have been eliminated by companies naming AI or automation as the primary reason.

Overall, 2026 has seen 322 layoff events affecting 205,832 workers as of early August, averaging around 927 job losses a day.

Where It Is Concentrated

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The losses are not spread evenly. Payroll declines in the financial-activities and information sectors — where AI adoption has been fastest — have accelerated to an average of 28,000 a month in 2026. The technology sector alone accounts for a third of all layoffs announced this year.

That concentration is the clearest evidence that this is AI-driven rather than a general economic contraction. The industries cutting hardest are the ones that adopted the technology earliest, and in several cases the ones that build it.

The Salesforce Example

The most concrete illustration came from Salesforce chief executive Marc Benioff, who said in August that the company had used AI agents to reduce its support organisation from 9,000 people to 5,000.

That is not a projection or a target. It is a completed reduction of roughly 44 per cent in one function at one large company, attributed directly to AI agents taking over the work. Customer support has been among the most exposed categories precisely because it is high-volume, text-based and pattern-heavy — the conditions under which current systems perform best.

The Finding That Cuts Against Intuition

Gallup research produced a result worth sitting with: 62 per cent of workers who were laid off were people who used AI once a year or less.

That is the opposite of the common assumption. The intuitive fear is that AI-proficient workers make their less-proficient colleagues redundant by doing more with the tools. The data points somewhere more uncomfortable — that not using AI is itself becoming the risk factor, and that the workers most exposed are those whose roles have not been reorganised around it.

It is correlation rather than causation, and the direction could run either way: workers in roles already being automated may simply have had less occasion to adopt AI tools. But as a predictor of who has been losing work, it is a stark number.

The Part The Statistics Miss

Analysts tracking this have repeatedly noted that layoffs are only part of the picture, and arguably not the largest part.

The quieter mechanism is hiring that does not happen. A company that would have added 200 people and instead adds 50 has eliminated 150 jobs that will never appear in a layoff statistic. Entry-level roles are the most exposed, because they concentrate the routine, structured work that current AI handles best — which removes the traditional bottom rung of professional career ladders without registering as job losses at all.

The Indian technology sector shows the same pattern at national scale. The combined market capitalisation of TCS, Infosys, Wipro, HCL Technologies and Tech Mahindra has fallen more than 46 per cent since August 2024, as generative AI automates the coding, testing and support work that the industry's labour-arbitrage model was built to supply.

Fifty thousand attributed job cuts is a real number and a rising one. It is also the most visible and probably the smallest component of what is actually happening to employment as this technology spreads.

About the Author

Tarun Mishra

Tarun Mishra is a Sub-Editor at WION. He has worked with leading outlets doing investigative journalism and covering business, global affairs, technology, space exploration etc. Hi...Read More