Microsoft shares $500M AI savings after 9,000 job cuts
▼ Summary
– Microsoft’s AI tools have significantly improved productivity, saving over $500 million in call center costs last year.
– Microsoft recently laid off 9,000 employees, bringing total job cuts this year to around 15,000 despite strong financial performance.
– Comments about AI’s benefits during layoffs were criticized as insensitive, especially after a now-deleted LinkedIn post suggested AI could help cope with job loss.
– Microsoft reported $26 billion in profit and $70 billion in revenue last quarter, with its market cap reaching $3.74 trillion.
– The company plans to invest heavily in AI, including $80 billion in infrastructure by 2025, prioritizing top AI researchers over other roles.
Microsoft has revealed staggering cost savings of over $500 million through AI implementation, even as the company undergoes significant workforce reductions. During a recent presentation, Chief Commercial Officer Judson Althoff highlighted how artificial intelligence has dramatically improved efficiency in sales, customer service, and engineering operations. The most notable savings came from AI-powered call center optimizations, contributing to the tech giant’s financial success.
These remarks arrive just weeks after Microsoft announced another round of layoffs, eliminating approximately 9,000 positions. Combined with earlier cuts this year, the total number of affected employees now exceeds 15,000. While the company attributes these changes to broader restructuring efforts, the timing, alongside record-breaking profits, has raised eyebrows.
The situation grew more contentious after a now-deleted LinkedIn post from Xbox Game Studios producer Matt Turnbull suggested that displaced workers could lean on AI tools like ChatGPT and Copilot to cope with job loss. The suggestion, though likely well-intentioned, struck a nerve among those impacted by the layoffs.
Microsoft’s financial performance remains robust, with first-quarter profits hitting $26 billion and revenues soaring to $70 billion. The company’s market value has surged to $3.74 trillion, briefly overtaking Apple and trailing only Nvidia in valuation.
A substantial portion of these profits is being funneled into AI development. Earlier this year, Microsoft committed $80 billion toward AI infrastructure by 2025. While the company continues hiring in specialized areas, particularly AI research, the focus appears to be shifting away from traditional roles. Instead, Microsoft is aggressively competing for top AI talent, signaling where its long-term priorities lie.
For employees caught in the middle of these shifts, the rapid embrace of AI, while financially beneficial for the company, presents a sobering reality about the evolving workplace.
(Source: TechCrunch)
