Microsoft recently announced it saved over $500 million in its call center operations last year from using AI tools to improve efficiency.
This was announced by Judson Althoff, Microsoft’s Chief Commercial Officer, during a company presentation.
Althoff explained that AI had significantly boosted productivity across several departments like customer service, software engineering, and sales.
Although this announcement highlighted the power of AI in streamlining business operations, the timing raised concerns.
Microsoft had just laid off more than 9,000 employees, which is the company’s third round of layoffs in 2025. In total, nearly 15,000 roles have been eliminated this year.
The Backdrop
Microsoft’s financial performance is strong; the company reported $26 billion in profit and $70 billion in revenue during the last quarter.
Its market value also reached $3.74 trillion, surpassing Apple and trailing only Nvidia.
Against this backdrop, the layoffs appear difficult to justify. The necessity of the job cuts is being brought into question.
A Remark
In a now-deleted LinkedIn post by Matt Turnbull, a producer at Xbox Game Studios, he suggested that those affected by layoffs could turn to AI tools like ChatGPT or Microsoft Copilot for support.
His post intended to offer help, but many saw it as out of touch. To suggest laid-off workers should rely on AI tools for emotional relief or career guidance seemed insensitive.
A Shift of Focus
Microsoft is not just using AI tools, it is also investing heavily in their development.
In January, the company announced it would spend $80 billion on AI infrastructure in 2025. This includes new data centers, model training, and computing power.
At the same time, Microsoft is actively hiring AI experts. The company, like many others, is now competing for top researchers in machine learning and AI.
Compensation for these roles is rising rapidly. In contrast, middle managers and other staff are being let go. This suggests a new hiring strategy: fewer generalists, more AI specialists.
