Microsoft: AI Saves $500M, But Layoffs Continue

2025-07-10
Microsoft: AI Saves $500M, But Layoffs Continue

Microsoft CCO Judson Althoff revealed that AI has saved the company over $500 million in call center costs and improved employee and customer satisfaction. AI is also used to handle interactions with smaller customers and generates 35% of the code for new products, accelerating product launches. Despite this, Microsoft has laid off approximately 15,000 employees this year, including customer-facing roles like sales. Microsoft emphasizes that AI will improve employee efficiency, but denies a direct correlation between layoffs and AI-driven productivity gains.

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