Microsoft saved $500 million thanks to AI and laid off 15,000 employees

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

According to the top manager, AI saved the company more than $500 million last year just in call centers and increased the satisfaction of employees and customers.

Microsoft uses the technology to work with small clients as well. The initiative is still in its early stages, but it is already generating tens of millions of dollars in revenue.

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

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

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

Messages about cost savings through the use of AI may provoke a negative reaction from laid-off employees. Xbox Game Studios producer Matt Turnbull published a post on LinkedIn stating that those who feel "overwhelmed" by layoffs at Microsoft can seek support from chatbots like ChatGPT and Copilot. The post was later deleted.

"These are indeed challenging times, and if you are facing a layoff or quietly preparing for one, 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 in short supply, these tools can help you get out of a rut faster, calmer, and with greater clarity," said Turnbull in a remote publication.

The increase in productivity due to AI "was not a primary factor" in the job cuts in recent months, Microsoft Chief Legal Officer Brad Smith said on Wednesday.

Althoff informed employees that AI can make them more effective salespeople. According to him, by using the Copilot assistant, each person finds more potential clients, closes deals faster, and generates 9% more revenue.

Microsoft reported a record profit of $26 billion on revenue of $70 billion in the first quarter. 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 showed that one in four CEOs worldwide expects to see staff reductions amid the large-scale adoption of generative artificial intelligence.