Tech and AI companies undermine Trump’s America-first mantra as hiring goes overseas

Software companies like Salesforce Inc. and Workday Inc. face a balancing act when it comes to fulfilling the need for AI integration and keeping costs relatively low. Their search for solutions has led them to hire staff outside the US. 

There has been a recent trend of tech companies expanding their workforce internationally to gain flexibility to meet their artificial intelligence goals while maintaining cost efficiency. 

Companies like Salesforce Inc. and Workday Inc. are in this category. They have reportedly been reducing their US-based staff, replacing them with employees from India, Mexico and Costa Rica.

This strategy is at odds with President Donald Trump’s “America first” agenda as it fails to prioritize American workers and relies on foreign labor. 

More companies are adopting this strategy in a bid to maintain their position in the competitive global market. 

Mass layoffs at Salesforce Inc. and Workday Inc.

The demand for artificial intelligence solutions intensifies by the minute, and with the constant growth and integration of the technology into every notable industry, tech companies are pushed to invest in order not to miss out on the AI wave. 

However, the primary focus of these companies remains maintaining profitability. One popular strategy among these companies is hiring in international markets, particularly in regions with skilled labor pools and lower operational costs than in the West.

Salesforce Inc. has decreased its US-based workforce from 58% to 51% between 2020 and January 2024. Earlier this week, the San Francisco-based software company announced that it would be laying off more than 1,000 employees to make room for new AI-focused staff. 

The company’s chief operating officer Brian Millham stated that the company would be considering hiring from less expensive locations with “incredible labor.”

In Pleasanton, California, Workday Inc. is laying off about 1,750 employees. The layoffs are part of the company’s international expansion for the sake of its profit margins. 

The company’s CEO Carl Eschenbach emphasized the benefits of hiring in countries like Costa Rica to achieve cost efficiency. He also mentioned possibly integrating AI into its operations, such as call centers and finance departments.

Unemployment sweeping the US

PayPal Holdings Inc. reported a decline in its US-based workforce from 53% to 38% over a five-year period ending in 2023.

ServiceNow Inc., and Synopsys Inc. have also reported a decline in the population of their US-based workforce in recent years. Some companies, like Oracle Corp., have most of their employees working from outside the US, while Microsoft Corp ., the world’s largest software company, has about 45% of its workforce overseas.

Checkr Inc., a platform that helps companies with background checks of new employees, noted a 42% increase in the volume of international hires between 2023 and 2024. 

Despite the international expansion of their workforce and efforts to increase international sales, Salesforce Inc. and Workday Inc. along with many other companies still depend on the US for most of their business. 

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