Connect with us

Business

Salesforce CEO Marc Benioff says AI cut 4,000 customer service jobs: ‘I need less heads’

Published

on



ChatGPT only launched three years ago. Since then, leaders including Marc Benioff and Jensen Huang have been adamant that cheaper alternatives to labor won’t cause mass unemployment. 

But in reality, the technology is slashing human headcounts at major companies—including Salesforce, which has cut 4,000 of its customer support roles for AI agents to pick up the work.

“I was able to rebalance my headcount on my support,” Marc Benioff, CEO of the $248 billion computer software company, recently revealed on the podcast The Logan Bartlett Show. “I’ve reduced it from 9,000 heads to about 5,000, because I need less heads.”

“If we were having this conversation a year ago and you were calling Salesforce, there would be 9,000 people that you would be interacting with globally on our service cloud and they would be managing, creating, reading, updating, deleting data,” he added. Today, those same interactions are happening, but “50% are with agents, 50% are with humans.”

And he doesn’t see his hybrid AI-human workforce as an other-worldly future. “I don’t think it’s dystopian at all,” he added. “This is reality, at least for me.”

Fortune reached out to Salesforce for comment. 

A change of tune from months ago

The tech titan has shown an interest in automating customer support jobs for some months now, previously telling Fortune that AI agents have completed over a million conversations with customers over the past six to nine months. But at the time, he said that mass layoffs weren’t on the cards. 

“I keep looking around, talking to CEOs, asking: what AI are they using for these big layoffs? I think AI augments people, but I don’t know if it necessarily replaces them,” Benioff revealed. “The reason is because a lot of this is still built on word models. Maybe there’s a future AI model that will be more accurate, but that’s not where we are right now. This is about humans and AI working together.”

And while the customer service department gets heavily slashed, he’s still adamant that it’s an “exciting” time for the wider company—and that humans will remain at the core of the function.

“There’s also an omni-channel supervisor now that’s helping those agents and those humans work together,” Benioff said on the podcast. “And this is the most exciting thing that’s happened in the last nine months for Salesforce.”

Plus, Salesforce’s elimination of support roles in particular should come as no surprise. The tech CEO has said that agents are already doing 30% to 50% of work within the company and that two roles in particular had the potential to be automated by AI agents: support and sales. By pushing humans out in favor of the advanced technology, Benioff said Salesforce has reduced its support cost by 17% so far.

But further automation beyond sales and support could be on the cards as the Salesforce boss revealed he’s looking at “every single function” to see how it can become an agentic business. 

Other companies slashing staff in favor of AI workers

CEOs once denied the fact that rapid AI adoption will slash staffers across organizations—but now leaders are openly sharing their plans to replace humans with bots. More than 64,000 have been laid off across the tech sector this year as industry heavyweights lead the charge in job automation.

In early July, Microsoft announced that it will cut about 9,000 roles—its largest round of layoffs since 2023. That plan brings the $3.74 trillion company’s total layoffs this year to a whopping 15,000 jobs, despite the company doing well financially; Microsoft posted a 18% year-to-year increase in net income last quarter. However, not all workers get to stick around after bringing home the bacon—the latest round of cuts is expected to hit sales and customer-facing roles, alongside the Xbox gaming division. 

Meta joined in on the automation push, laying off 3,600 employees in Feburary—and CEO Mark Zuckerberg even said that AI could be “effectively be a sort of mid-level engineer” sometime this year, with the ability to code. Google also wasn’t shy about reducing hundreds of roles across its Android, Pixel, and Chrome sectors. In reasoning about the mass firings, both Silicon Valley giants claimed the need to streamline human operations and invest more in AI.

And Benioff’s far from being the first leader to cut down specifically customer service jobs—fintech company Klarna’s AI agents are doing the work of 700 customer service employees. And among the professions most impacted by generative AI, sales representatives rank fourth and customer service agents rank sixth. 

“We have so many leads that we can’t follow up on them all. Sales people basically cherry pick what leads they want to call back. Thousands of leads, tens of thousands of leads, hundreds of thousands of leads have never been called back,” Benioff told Fortune earlier this year. “But in the agentic world, there’s no excuse for that. Every lead can be followed up on.”

Introducing the 2025 Fortune Global 500, the definitive ranking of the biggest companies in the world. Explore this year’s list.



Source link

Continue Reading

Business

Nearly three-quarters of Trump voters think the cost of living is bad or the worst ever

Published

on



President Donald Trump and his administration insist that costs are coming down, but voters are skeptical, including those who put him back in the White House.

Despite Republicans getting hammered on affordability in off-year elections last month, Trump continues to downplay the issue, contrasting with his message while campaigning last year.

“The word affordability is a con job by the Democrats,” Trump said during a Cabinet meeting on Tuesday. “The word affordability is a Democrat scam.”

But a new Politico poll found that 37% of Americans who voted for him in 2024 believe the cost of living is the worst they can ever remember, and 34% say it’s bad but can think of other times when it was worse.

The White House has said Trump inherited an inflationary economy from President Joe Biden and point to certain essentials that have come down since Trump began his second term, such as gasoline prices.

The poll shows that 57% of Trump voters say Biden still bears full or almost full responsibility for today’s economy. But 25% blame Trump completely or almost completely.

That’s as the annual rate of consumer inflation has steadily picked up since Trump launched his global trade war in April, and grocery prices have gained 1.4% between January and September.

Meanwhile, Vice President JD Vance pleaded for “patience” on the economy last month as Americans want to see prices decline, not just grow at a slower pace.

Even a marginal erosion in Trump’s electoral coalition could tip the scales in next year’s midterm elections, when the president will not be on the ballot to draw supporters.

A soft spot could be Republicans who don’t identify as “MAGA.” Among those particular voters, 29% said Trump has had a chance to change things in the economy but hasn’t taken it versus 11% of MAGA voters who said that.

Across all voters, 45% named groceries as the most challenging things to afford, followed by housing (38%) and health care (34%), according to the Politico poll.

The poll comes as wealthier households are having trouble affording basics, while discount retailers like Walmart and even Dollar Tree are seeing more higher-income customers.

And in a viral Substack post last month, Michael Green, chief strategist and portfolio manager for Simplify Asset Management, argued that the real poverty line should be around $140,000.

“If the crisis threshold—the floor below which families cannot function—is honestly updated to current spending patterns, it lands at $140,000,” he wrote. “What does that tell you about the $31,200 line we still use? It tells you we are measuring starvation.”



Source link

Continue Reading

Business

Apple is experiencing its biggest leadership shakeup since Steve Jobs died, with over half a dozen key executives headed for the exits

Published

on



Apple is currently undergoing the most extensive executive overhaul in recent history, with a wave of senior leadership departures that marks the company’s most significant management realignment since its visionary co-founder and CEO Steve Jobs died in 2011. The leadership exodus spans critical divisions from artificial intelligence to design, legal affairs, environmental policy, and operations, which will have major repercussions for Apple’s direction for the foreseeable future.

On Thursday, Apple announced Lisa Jackson, its VP of environment, policy, and social initiatives, as well as Kate Adams, the company’s general counsel, will both retire in 2026. Adams has been Apple’s chief legal officer since 2017, and Jackson joined Apple in 2013. Adams will step down late next year, while Jackson will leave next month.

Jackson and Adams join a growing list of top executives who have either left or announced their exits this year. AI chief John Giannandrea announced his retirement earlier this month, and its design lead Alan Dye, who took charge of Apple’s all-important user interface design after Jony Ive left the company in 2019, was just poached by Mark Zuckerberg’s Meta this week.​

The scope of the turnover is unprecedented in the Tim Cook era. In July, Jeff Williams, Apple’s COO who was long thought to succeed Cook as CEO, decided to retire after 27 years with the company. One month later, Apple’s CFO Luca Maestri also decided to step back from his role. And the design division, which just lost Dye, also lost Billy Sorrentino, a senior design director, who left for Meta with Dye. Things have been particularly turbulent for Apple’s AI team, though: Ruoming Pang, who headed its AI Foundation Models Team, left for Meta in July and took about 100 engineers with him. Ke Yang, who led AI-driven web search for Siri, and Jian Zhang, Apple’s AI robotics lead, also both left for Meta.

Succession talks heat up

While all of these departures are a big deal for Apple, the timing may not be a coincidence. Both Bloomberg and the Financial Times have reported on Apple ramping up its succession plan efforts in preparation for Cook, who has led the company since 2011, to retire in 2026. Cook turned 65 in November and has grown Apple’s market cap from about $350 billion to a whopping $4 trillion under his tenure. Bloomberg reports John Ternus has emerged as the leading internal candidate to replace him.​

Apple choosing Ternus would be a pretty major departure from what’s worked for Apple during the past decade, which has been letting someone with an operational background and a strong grasp of the global supply chain lead the company. Ternus, meanwhile, is focused on hardware development, specifically for the iPhone, iPad, Mac, and Apple Watch. But it’s that technical expertise that’s made him an attractive candidate, especially as much of the recent criticism about Apple has revolved around the company entering new product categories (Vision Pro, but also the ill-fated Apple Car), as well as its struggling AI efforts.​

Now, of course, with so many executives leaving Apple, succession plans extend beyond the CEO role. Apple this week announced it’s bringing in Jennifer Newstead, who currently works as Meta’s chief legal officer, to replace Adams as the company’s general counsel starting March 1, 2026. Newstead is expected to handle both legal and government affairs, which is essentially a consolidation of responsibilities among Apple’s leadership team, merging Adams’ and Jacksons’ roles into one.​

Alan Dye, meanwhile, will be replaced by Stephen Lemay, a move that’s reportedly being celebrated within Apple and its design team in particular. John Gruber, who’s reported on Apple for decades and has deep ties within the company, wrote a pretty scathing critique about Dye, but in that same breath said employees are borderline “giddy” about Lemay—who has worked on every major Apple interface design since 1999, including the very first iPhone—taking over.

Meanwhile, on the AI team, John Giannandrea will be replaced by Amar Subramanya, who led AI strategy and development efforts at Google for about 16 years before a brief stint at Microsoft.

Hitting the reset button

All of the above departures cover critical functions for Apple: AI competitiveness, design innovation, regulatory navigation, and operational efficiency. Each replacement brings specialized expertise that aligns with the challenges Cook’s successor will inherit.

The real test will be execution across multiple fronts simultaneously. Can Subramanya accelerate Apple’s AI development to match competitive threats? Will Lemay’s design leadership maintain Apple’s interface advantages as AI reshapes user interaction? Can Newstead navigate regulatory challenges while preserving Apple’s privacy-first approach?

What’s certain is the company will look fundamentally different in 2026—and the executive team that grew Apple into a $4 trillion behemoth is departing. The transformation could be as profound as any since Jobs handed the reins to his COO at the time, Tim Cook, 14 years ago.



Source link

Continue Reading

Business

Elon Musk says Tesla owners will soon be able to text while driving

Published

on



Elon Musk has given the thumbs up to some Tesla drivers texting behind the wheel.

The EV maker recently introduced a 30-day free trial of its Full Self-Driving (Supervised) (FSD) features on its North American cars, which has traffic-aware cruise control, autosteer, and autopark. To the Tesla CEO, the automated features in place are enough to condone texting while driving. According to safety experts, Musk’s suggestion is actually plain illegal.

In response to an X user’s question on Thursday about being able to text and drive while a Tesla is operating FSD v14.2.1, its latest full self-driving capabilities, Musk responded: “Depending on context of surrounding traffic, yes.”

Musk’s response mirrors his comments at Tesla’s annual shareholder meeting last month, where he said the company would soon feel comfortable with a multitasking driver.

“We’re actually getting to the point where we almost feel comfortable allowing people to text and drive, which is kind of the killer [application] because that’s really what people want to do,” Musk said. “Actually right now, the car is a little strict about keeping eyes on the road, but I’m confident that in the next month or two—we’re going to look closely at the safety statistics—but we will allow you to text and drive essentially.”

With a $1 trillion pay package on the line, Musk has worked to jumpstart Tesla after continued lagging sales. His lofty automation goals tied to the compensation plan include delivering 20 million vehicles and having 10 million active FSD subscriptions, as well as 1 million robotaxis on the commercially operational.

FSD roadbumps 

Tesla’s FSD rollout, much like its other automated technologies, has hit snags. In October, the U.S. Department of Transportation-run National Highway Traffic Safety Administration (NHTSA) opened an investigation into the EV maker, alleging its FSD software violated traffic laws and led to six crashes, four of which resulted in injuries. It cited data from 18 complaints from Tesla users claiming the FSD-equipped cars ran red lights or swerved into other lanes, including into oncoming traffic.

There is another complication for Musk’s vision of a Tesla owner typing away behind the wheel: Texting and driving is illegal in nearly the entire country, barring Montana, according to the U.S. Bureau of Transportation Statistics. According to the NHTSA, distracted driving resulted in 3,275 deaths in 2023.

Even Tesla has warned owners against texting while driving, even with some automated features in place: Tesla’s Model Y Owner’s Manual asks drivers not to use their phones while driving with Autopilot software enabled. (Autopilot refers to Tesla’s basic driver assistance features requiring hands on the steering wheel, while FSD is a paid subscription package with enhanced automated features and does not require a driver to have hands on the steering wheel.)

“Do not use handheld devices while using Autopilot features,” the manual said. “If the cabin camera detects a handheld device while Autopilot is engaged, the touchscreen displays a message reminding you to pay attention.”

Tesla did not respond to Fortune’s request for comment.

What experts are saying

Alexandra Mueller, senior research scientist for Insurance Institute for Highway Safety, told Fortune condoning texting while behind the wheel completely undermines the purpose of Tesla’s current automated features Tesla, which are a level 2 on the five-point automation scale, meaning the models require the driver to still be fully in control of the vehicle.

“Having partial automation support doesn’t mean that you suddenly can kick back and text and not worry about driving,” Mueller said, “because that’s just not how these systems are designed to be used—and that’s also not the responsibility that the driver has when using these systems, and that’s by design.”

She said automated systems like Tesla’s are not designed to replace the driver and work because they are “human-in-the-loop” and were designed to support the driver’s discretion behind the wheel. Beeps and notifications from the vehicle if a driver changes lanes without signalling can help shape good behaviors, Mueller noted. Encouraging multitasking behind the wheel turns these features into convenience factors, rather than the safety precautions they were intended to be.

“Suddenly all your safety assessments on the technology don’t apply anymore, because you’ve changed the very nature of how the technology is supporting human-in-the-loop behavior,” Mueller concluded.



Source link

Continue Reading

Trending

Copyright © Miami Select.