AI isn’t the real reason for tech layoffs? Salesforce CEO Marc Benioff calls it a ‘lazy way out’

In the middle of mass layoffs across the global tech sector, Salesforce CEO Marc Benioff has pushed back against the growing narrative that artificial intelligence (AI) is the primary reason behind job cuts.

Speaking on Matt Berman’s show The Future Live, the Salesforce CEO said it is “too simplistic” to blame AI for layoffs, warning that the technology is often being used as a convenient explanation.

“I don’t think most people still really understand what is going on,” Benioff said. “And it’s too easy… to basically take AI and make it the scapegoat. And I think for some CEOs, it’s the lazy way out.”

One label does not explain every layoff

Benioff warned against grouping all companies under a single AI-led layoffs narrative, noting that the reasons behind workforce reductions vary widely.

Some companies, Benioff said, are cutting jobs because “they have made financial commitments specifically to data centres that they have to pay for.” Others are reshaping teams to align with new technology realities, “to reflect the changes in artificial intelligence.”

He emphasised that oversimplification distorts the real picture. “You cannot bucket all these companies together. If you do, you are making a fundamental mistake, I think, in business,” he said.

‘Rebalancing’, not retreating from hiring

At Salesforce itself, Benioff described recent workforce changes as part of a broader restructuring rather than a pullback from hiring.

“It’s been an uncomfortable period for ourselves over the last 5 years of rebalancing our workforce,” he said, adding that the company has now “hit a new record number of employees, which is more than 83,000.”

While acknowledging the productivity gains from AI, Benioff stressed that human talent remains critical. Referring to engineering teams, he said they are “probably more than 30% more productive,” but clarified, “We’re not at that level yet of AI.”

He added that Salesforce continues to actively recruit, particularly in engineering and sales roles. “We badly need that talent,” Benioff said, highlighting ongoing hiring of interns and graduates.

Layoffs continue across Big Tech

Benioff’s remarks come at a time when layoffs continue across the global technology sector. Oracle recently laid off thousands of employees across roles and divisions.

In India alone, nearly 12,000 employees are reported to have been affected, making it one of the largest workforce reductions in the sector in recent times.

According to reports, impacted employees received an early morning email on March 31 stating: “We have made the decision to eliminate your role as part of a broader organisational change. As a result, today is your last working day.”

Amazon earlier this year said it would cut about 16,000 corporate roles, following a previous reduction of 14,000 employees. Meanwhile, Meta has also laid off hundreds of workers in recent weeks.

According to data from layoff tracker Layoffs.fyi, 71,447 employees across 80 tech companies have been laid off in 2026.