- Microsoft saved over $500M in 2024 by using AI, especially in customer service operations.
- This news comes just after 9,000 layoffs, totaling 15,000 job losses in 2025.
- Despite record profits, Microsoft’s focus is shifting toward AI talent and infrastructure.
- A now-deleted post suggesting laid-off workers use AI tools sparked public criticism.
Microsoft is touting significant cost savings from its adoption of artificial intelligence, particularly in areas like customer service, sales, and engineering. Judson Althoff, the company’s Chief Commercial Officer, said during a recent presentation that AI tools helped Microsoft save over $500 million in its call center operations alone last year.
These savings are part of a broader strategy to improve efficiency and productivity across the company through advanced automation and generative AI.
Althoff highlighted how AI is now deeply embedded in Microsoft’s operations, optimizing workflows and reducing the need for human labor in routine tasks. As the company continues to invest in AI tools like Copilot and its integration with services such as Azure and Microsoft 365, it expects those efficiencies to grow even further.
Layoffs Prompt Backlash Amid Record Profits
The announcement of AI-driven savings comes just days after Microsoft laid off more than 9,000 workers, adding to a total of roughly 15,000 job cuts so far in 2025. This marks the third wave of layoffs this year, affecting roles across departments, including significant cuts at Xbox.
While the company hasn’t explicitly stated that AI is replacing these roles, the overlap between job cuts and AI gains has not gone unnoticed. Many are questioning why a company posting such strong profits and market performance is letting go of so many employees.
Microsoft closed out its most recent quarter with $70 billion in revenue and $26 billion in profit, figures that place it among the most profitable companies in the world. Its market capitalization recently hit $3.74 trillion, putting it ahead of Apple and second only to Nvidia.
Controversial Reactions and Communication Missteps
The company’s internal messaging and public commentary have drawn criticism from former employees and industry observers alike.
A LinkedIn post by Xbox Game Studios producer Matt Turnbull, now deleted, suggested that those affected by the layoffs turn to AI tools like ChatGPT and Microsoft Copilot to help manage the psychological toll of job loss.
The post was met with backlash, with many seeing it as out of touch with the human impact of large-scale layoffs.
Such communications have intensified concerns about how Microsoft is handling the balance between technological advancement and workforce stability. For those who were let go, the upbeat messaging about AI’s benefits feels disconnected from the reality of losing a job.
Focus Shifts to AI Talent and Infrastructure
Despite the job cuts, Microsoft continues to aggressively hire in AI and related fields. The company has committed to investing $80 billion in AI infrastructure throughout 2025. This includes data centers, specialized hardware, and recruiting top AI researchers, part of the ongoing talent war in the artificial intelligence space.
Microsoft’s pivot toward AI reflects a broader industry trend, where major tech firms prioritize automation and advanced computing over traditional roles. As AI becomes more central to business strategy, the makeup of the modern workforce is changing rapidly, leaving many to wonder what role human employees will play in the years to come.
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