What will be The Market Reaction to The Next String of Corporate Layoffs?
6/30/25, 8:00 PM
In a recent interview with Emily Chang of Bloomberg Salesforce CEO and founder Marc Benioff proclaimed AI is doing 30-50% of the work at Salesforce. The company recently laid off 1000 employees and still does over 70,000, making it the largest employer (according to the SF Chronicle). If AI is doing that 50% of the work, several outlets have asked, does this mean 30-50% of Saleforce's current workforce is expendable?
In a recent interview with Emily Chang of Bloomberg, Salesforce CEO and founder Marc Benioff proclaimed AI is doing 30-50% of the work at Salesforce.
The company recently laid off 1000 employees and still does over 70,000, making it the largest employer (according to the SF Chronicle). If AI is doing that 50% of the work, several outlets have asked, does this mean 30-50% of Saleforce's current workforce is expendable?
At the same time smaller start ups and proprietors are utilizing AI to add power to their operations in what would have taken significant increases in capital resources - making them more competitive.
Often times corporate policy or actions are adopted by competitors in sympathy...or just because they don't want to lose an edge. And often times shareholder and market pressure plays a big role in forcing leaders to adopt or undertake certain policies such as rapidly increasing workforce or accumulation of assets (e.g. Nvidia chips) or "right-sizing" a gross workforce.
So our questions are: what are the implementation for back office and administrative workforce at other service driven companies? What are the next companies to watch for downsizing? More importantly - will the market reaction continue to look at these events positively as cost-efficiency optimizing moves or an ominous cycle beginning?
TAKEAWAY$
Quick recaps of the week's market activity, highlighting the highs and lows