Microsoft’s $500M AI Savings Raise Questions Amid 9,000 Layoffs
Microsoft saved $500M using AI, but after 9,000 layoffs, critics are questioning the human cost behind its profit surge.
Matilda
Microsoft’s $500M AI Savings Raise Questions Amid 9,000 Layoffs How Microsoft’s $500M AI Savings Spark Controversy After 9,000 Layoffs Microsoft recently reported a staggering $500 million in internal savings thanks to artificial intelligence. The announcement, made by chief commercial officer Judson Althoff, highlighted productivity gains across departments like sales, customer service, and software engineering. Yet the timing couldn’t have been more jarring. Just days earlier, Microsoft confirmed it had laid off more than 9,000 employees—its third wave of job cuts in 2025, bringing the total to around 15,000. For many, this raised a pressing question: Is Microsoft replacing human workers with AI in the name of efficiency? Image Credits:Microsoft AI Savings at Microsoft: Cost-Cutting or Cost of Jobs? Althoff praised AI for transforming Microsoft’s operations, stating the company saved over $500 million last year in its call center alone. These savings stem from the use of advanced tools like Copilot and ChatGPT integrations, which handle customer que…
