Microsoft Saves $500 Million with AI, Lays Off 15,000 Employees

Microsoft’s Chief Commercial Officer, Judson Althoff, stated that AI tools enhance productivity across various areas such as sales, customer service, and software development. This was reported by Bloomberg, citing sources.

According to the executive, AI saved the company over $500 million last year in call centers alone and increased satisfaction among employees and customers.

Microsoft also employs the technology for working with smaller clients. The initiative is still in its early stages but is already generating tens of millions of dollars in revenue.

Notably, about a week ago, the corporation laid off more than 9,000 employees, marking the third round of cuts in 2025. In total, around 15,000 people have lost their jobs.

“We continue to implement the organizational changes necessary to provide the best conditions for the success of the company and teams in a dynamic market,” a Microsoft representative said in an email.

Previously, the firm’s CEO, Satya Nadella, stated that 20-30% of its code is written by artificial intelligence.

Reports of cost savings due to AI use may provoke a negative reaction from laid-off employees. Xbox Game Studios producer Matt Turnbull posted on LinkedIn, stating that those feeling “overwhelmed” by the layoffs at Microsoft could seek support from chatbots like ChatGPT and Copilot. The post was later deleted.

“These are indeed challenging times, and if you are facing layoffs or quietly preparing for them, you are not alone and should not go through this by yourself. No AI service can replace your voice or your life experience. But at a time when mental energy is scarce, these tools can help you navigate out of a deadlock faster, more calmly, and with greater clarity,” Turnbull’s deleted post read.

Increased productivity through AI “was not the primary factor” in recent job cuts, Microsoft’s Chief Legal Officer Brad Smith stated on Wednesday.

Althoff informed employees that AI could make them more effective salespeople. He noted that with the use of the Copilot assistant, each person finds more potential clients, closes deals faster, and generates 9% more revenue.

Microsoft achieved a record profit of $26 billion in the first quarter with revenue of $70 billion. In January, the company announced that it would invest $80 billion in the artificial intelligence sector in the 2025 fiscal year.

A survey conducted in January 2024 revealed that one in four CEOs worldwide expects staff reductions amid the widespread adoption of generative artificial intelligence.