When your CEO makes a joke about immigration enforcement agents watching your international colleagues, it probably won't land well. And when your company is reportedly pitching AI tools to that same agency, well, you've got yourself a situation.

That's what's unfolding at Salesforce.com Inc. (CRM), where employees are circulating an internal letter demanding CEO Marc Benioff take a firm stance against U.S. Immigration and Customs Enforcement. The letter, reported by Wired on Tuesday, asks Benioff to publicly condemn ICE's recent actions, prohibit the agency from using Salesforce software, and back federal legislation to reform immigration enforcement.

When a Joke Becomes a Flashpoint

The employee pushback intensified after Benioff made an ill-timed quip during the company's annual leadership kickoff in Las Vegas. While thanking international staff who had traveled to the U.S. for the event, he joked that ICE agents were in the building monitoring foreign employees. According to 404 Media, the remark didn't exactly generate laughs.

But the joke is just one piece of a larger controversy. Employees organized the letter in response to reports that Salesforce pitched AI tools to ICE to accelerate the hiring of 10,000 agents and help process tip-line reports. For workers who take seriously their company's stated commitment to ethical technology use, this felt like a betrayal of core values.

The letter emphasizes Benioff's "unique weight in Washington" and urges him to deploy that influence. Specifically, employees want him to establish clear boundaries—what they call "red lines"—that would prevent Salesforce's cloud and AI products from being used for what they describe as state violence.

Salesforce didn't respond to requests for comment.

Part of a Bigger Tech Worker Movement

This isn't happening in isolation. Tech employees increasingly challenge their employers over government contracts, particularly those involving immigration enforcement. Just last week, more than a thousand Google (GOOGL) (GOOG) workers signed a petition demanding the company terminate contracts with federal immigration agencies and provide greater transparency about how those agencies use Google technology.

The pattern is clear: a growing segment of the tech workforce believes companies should draw ethical lines around who can use their products and for what purposes.

Reorganization and Job Cuts

While navigating this internal controversy, Salesforce is simultaneously restructuring around artificial intelligence. The company recently cut jobs as part of its AI pivot, according to a Tuesday report. Leadership changes are also underway, with six new or promoted executives now heading key divisions including Agentforce and Slack. These appointments replace five prominent leaders who departed since December.

The workforce reductions have been substantial. In September 2025, Salesforce eliminated 4,000 customer support positions, shrinking its support staff from 9,000 to 5,000 employees, Benioff revealed on the Logan Bartlett Podcast. The company is clearly betting that AI can handle work previously done by humans—a strategy that comes with both efficiency gains and obvious irony given the current controversy over AI tools for government agencies.

Stock Troubles Add to the Pressure

Benioff is dealing with more than just internal dissent. Salesforce stock hit a fresh 52-week low last week, caught in a broader technology sector selloff. The decline followed disappointing earnings from fellow enterprise software companies SAP (SAP) and ServiceNow (NOW), which spooked investors about the entire category.

Over the past year, Salesforce shares have plummeted 40.37%, according to market data. On Tuesday, the stock managed a modest 0.30% gain to close at $193.45—a small bounce that does little to offset the steep decline.

All eyes now turn to Wednesday, February 25, when Salesforce reports fourth-quarter results after markets close. Investors will be looking for signs that the company's AI strategy is paying off, even as employees question whether that strategy should include controversial government contracts.

The timing creates an uncomfortable juxtaposition: a CEO preparing to sell Wall Street on his company's AI-driven transformation while his own workforce demands he reject certain AI applications on ethical grounds. It's the kind of tension that defines modern tech companies—caught between growth imperatives, shareholder expectations, and employee values that don't always align.