SAN FRANCISCO, March 5, 2026, 15:53 (PST)
Salesforce President Robin Washington told employees on Thursday the company is “appropriately adjusting” after CEO Marc Benioff’s ICE jokes stirred internal backlash, according to audio from an all-hands reviewed by Business Insider. Washington, who is also chief operating officer and CFO, told staff, “What unites us is our values.” Cofounder Parker Harris weighed in during the meeting, saying, “Marc made a very bad joke” and that he was “not OK with it,” the report said. Salesforce did not immediately respond to a request for comment. Business Insider
San Francisco’s software giant is grappling with a complicated stretch. As layoffs ripple through tech, it’s pushing workers and clients to zero in on a sweeping AI pivot. At the same time, executives are catching fresh heat over what they say in public.
Now, this is crucial for Salesforce—trust is part of the product. The company stores sensitive customer information, handling core sales and service for major clients. When culture issues crop up, retention and hiring get tougher, and these problems can pull top executives off track, just as buyers are growing more careful.
Speaking with CNBC this Wednesday, Benioff dismissed concerns over AI triggering sweeping white-collar job losses, instead pointing to Block’s latest layoffs as stemming from “unique issues” specific to that firm. “These pronouncements of these mass white collar layoffs: I just do not see it,” he told Business Insider. Business Insider
There’s been plenty of chatter among investors lately about the rise of so-called “AI agents”—software that handles jobs with minimal human help—and what that could mean for SaaS subscriptions. On Wall Street, some have already latched onto the term “SaaSpocalypse” to describe worries that businesses could cut back on packaged software spending if AI emerges as a cheaper way to link up different workflows.
Salesforce projected fiscal 2027 revenue that missed Wall Street’s target last week, according to Reuters, as the company ramps up AI spending. “Against the backdrop of concerns about AI eating software-as-a-service, Salesforce needs to show it is continuing to translate early AI traction into broader enterprise adoption,” said Rebecca Wettemann, CEO at Valoir, an industry analyst firm. Reuters
Salesforce ended Thursday up 4.3% at $201.39, bucking the market’s downturn, according to MarketWatch. Microsoft picked up 1.35%. Alphabet, though, finished lower, the report noted.
Still, the internal backlash is a wild card Salesforce can’t crunch into a spreadsheet—a distraction that keeps rippling out. Persistent employee frustration could dial up attrition risk and inject friction precisely when the company wants to convince customers and investors that its AI drive will reinforce, not erode, its core business.
Washington told staff to stick to values, listen, and be ready to adjust. Whether that’s enough to bridge internal divides remains uncertain.
