In line with its AI strategy, Salesforce launched Agentforce, an AI-powered chatbot designed to enhance customer service automation, which has already secured over 1,000 deals since its launch.

CEO Marc Benioff emphasized the critical role of AI in Salesforce's strategy, highlighting the integration of AI into its enterprise tools as a key focus.

Despite the positive outlook, Salesforce is facing pressure to maintain profitability, leading to recent layoffs as part of a broader strategy to manage costs.

The company also raised its full-year revenue guidance to between $37.8 billion and $38 billion, reflecting confidence in its growth trajectory.

The company laid off around 700 employees in January 2024 and 300 in July 2024, indicating a pattern of workforce reductions amid technological advancements.

Salesforce reported a strong performance in its third-quarter fiscal 2025 earnings, with revenue reaching $9.44 billion, an 8% increase from the previous year.

Salesforce's enterprise cloud portfolio, particularly its AI-driven tools, continues to drive revenue growth, helping clients manage workflows and data effectively.

Affected employees have the option to reapply for other internal positions within the company, although the specific sectors impacted by the layoffs have not been disclosed.

Salesforce is expected to announce its fourth-quarter earnings at the end of February 2025, with analysts having mixed views on the stock ahead of the results.

Currently, Salesforce stock holds a Moderate Buy consensus rating, with an average price target suggesting a potential upside of 17%.

To support the growing demand for Agentforce, Salesforce plans to hire 1,400 new employees in the fourth quarter, reflecting its commitment to expanding its AI capabilities.

Benioff noted the need to balance new product launches with existing commitments and efficiency improvements, indicating a strategic approach to growth.