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Валентин ШнайдерAI Eng
11 July 2025, 13:51
2025-07-11
AI instead of workers: Microsoft boasts $500 million in savings amid massive layoffs
Microsoft is actively implementing artificial intelligence into its internal processes while continuing mass layoffs. The company says AI has already saved hundreds of millions of dollars, although this is causing concern among employees who see it as a replacement for humans.
Microsoft is actively implementing artificial intelligence into its internal processes while continuing mass layoffs. The company says AI has already saved hundreds of millions of dollars, although this is causing concern among employees who see it as a replacement for humans.
As Bloomberg reports, Microsoft Chief Commercial Officer Judson Altoff said during an internal presentation that the company saved more than $500 million last year by implementing AI in call centers alone. In addition, both customer and employee satisfaction levels have increased.
AI is also being used to serve smaller clients. The area is still in its early stages, but it is already generating tens of millions of dollars. According to Altoff, AI generates 35% of the code for new products, and Copilot has more than 15 million users.
Despite these successes, Microsoft announced that it would cut about 15,000 jobs in 2025. The layoffs affected sales and customer service teams in particular. While company officials insist that automation was not the main reason for the layoffs, the situation is causing a growing «replacement» fear among tech workers.
Altoff emphasized that AI not only replaces but also augments people: Copilot salespeople find more leads, close deals faster, and generate 9% more revenue. However, tensions remain as one division optimizes while another loses jobs.
AI is increasingly integrated into the internal processes of large corporations. Salesforce has already stated that 30% of internal work is performed by AI, and at Alphabet and Meta, part of the code is already created by LLM models. This allows you to reduce costs, accelerate product launches and at the same time minimize hiring. In such conditions, AI-positive rhetoric is increasingly combined with large-scale layoffs — a new standard of technological development that not every employee is ready to accept.
Recall, we recently wrote about how a top Xbox manager advised laid-off employees to deal with stress with the help of AI and caused a wave of criticism.
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