Microsoft used AI across sales, customer service and software development to boost productivity and save over $500 million in call centers alone. The announcement came just after a fresh wave of layoffs pushed the total number of job reductions in 2025 to around 15,000. AI tools like Copilot and internal systems now manage calls, handle small client interactions and help write code up to one-third of code for new products now comes from AI. In call centers, AI helped reps solve issues more quickly and accurately, boosting satisfaction for both employees and customers.
During internal sessions, executives described how Copilot helps sales staff uncover more leads, close deals faster and generate about 9 percent extra revenue per rep.
Cuts were broad. Roles in sales, development, gaming and even AI and cloud teams were affected. Several studios under Xbox were shuttered. Long-time employees lost roles some learned while on vacation. Internal messaging around layoffs stirred controversy. A producer suggested laid-off staff lean on AI chatbots for emotional relief. That message was deleted following a backlash. People questioned whether improving AI-powered efficiency is replacing human roles.
This signals a strategic shift. Microsoft prioritizes investment in AI infrastructure. Reassignments within teams may keep overall headcount stable, but culture is changing fast. Efficiency gains come with a cost. Employees worry that job loss might become the new normal in this AI-first approach.
