Peers Slash 11% Jobs, AI Drives 26% YTD Drop, Analysts Still Buy Salesforce
Freshworks cuts 11% of its workforce (about 500 jobs) and records $8 million in severance charges as AI-driven automation reshapes the software industry, driving peer stocks like Salesforce down about 26% year to date. Multiple Wall Street analysts maintain buy ratings on Salesforce, citing confidence in its long-term AI investments.
1. Freshworks Cuts Under AI Pressures
Freshworks announced a global workforce reduction of 11%, eliminating about 500 roles and incurring $8 million in one-time charges to offset rising AI-related costs and automation efforts.
2. Impact on Software Peers
The AI-driven restructuring trend has pressured software stocks broadly, with Salesforce shares falling approximately 26% this year as investors weigh the impact of AI-written code and routine task automation.
3. Analyst Ratings for Salesforce
Despite sector headwinds and peer layoffs, multiple Wall Street analysts have reaffirmed buy ratings on Salesforce, highlighting its robust enterprise integration, recurring revenue streams and continued investment in AI-enhanced products.