Salesforce Inc. (NYSE: CRM) faced downward pressure on its stock price on Tuesday after news emerged about workforce reductions impacting fewer than 1,000 employees. These layoffs, which reportedly affected teams across the marketing, product, and data departments, occurred earlier in the month but have not been publicly disclosed by the company. According to people familiar with the situation, these changes are part of a broader organizational adjustment amid evolving business strategies.
In addition to staff reductions, Salesforce has made significant shifts within its executive ranks. The firm has named six executives to lead various business segments, including teams responsible for Agentforce and Slack. These appointments come as replacements for five high-ranking leaders who have announced their departures since December, signaling a period of transition within the company’s upper management.
The ongoing adoption of artificial intelligence technologies is playing a notable role in industry-wide staffing decisions. Several technology firms are reducing headcount as AI increasingly automates routine tasks, leading to declines in certain operational roles. For Salesforce, these developments follow a previous workforce adjustment in September 2025, when the company eliminated 4,000 customer support roles. CEO Marc Benioff publicly acknowledged that reduction, noting the support team was downsized from 9,000 to 5,000 employees.
Across the tech sector, AI has been cited as a factor in significant layoffs. Consulting firm Challenger, Gray & Christmas reported that over 54,000 layoffs in 2025 were attributed to AI displacement. Notably, Amazon.com Inc. (NASDAQ: AMZN) also undertook substantial staff cuts, releasing 16,000 employees in January following a reduction of 14,000 in October.
Market participants are now turning their attention to Salesforce’s forthcoming earnings announcement, scheduled for February 25, 2026. Analysts project earnings per share of $2.69, reflecting a year-over-year decrease from $2.78. Revenue estimates show anticipated growth to $11.18 billion, up from $9.99 billion the previous year. Despite this expected increase in top-line figures, the company is trading at a price-to-earnings ratio of 25.9x, indicating it commands a premium valuation relative to peers.
Analyst sentiment remains generally favorable, with the consensus rating categorized as Buy and an average price target of $325.24. However, individual analyst perspectives vary: Piper Sandler maintains an Overweight rating but lowered its target to $280 on February 3; Barclays remains Overweight and raised its target to $338 on January 12; RBC Capital shifted to a Sector Perform rating while increasing its price target to $290 on January 5.
A closer look at Salesforce’s market metrics via the Benzinga Edge rankings highlights a mix of strengths and weaknesses. The company scores strongly on growth potential (65.51) and overall quality (73.45), reflecting a robust balance sheet and solid expansion prospects. Conversely, it rates comparatively weak on value (7.28) due to its steep premium relative to competitors and momentum (7.09), indicating underperformance against the broader market.
Stock performance on Tuesday reinforced these trends, with shares falling approximately 2.49% to $189.20 in premarket trading. This places the stock close to its 52-week low near $185.73, signaling potential investor caution amid ongoing corporate changes and external pressures.
As Salesforce navigates this period marked by organizational restructuring, leadership turnover, and integration of AI technologies, stakeholders will closely monitor how these factors influence operational efficiency and financial outcomes. The company’s ability to manage workforce adaptations alongside sustaining revenue growth and maintaining shareholder confidence remains critical in the lead-up to its earnings release.