Microsoft has revealed that its AI-powered tools are significantly enhancing productivity across multiple business areas, including sales, customer support, and software engineering. According to a report from Bloomberg, Judson Althoff, Microsoft’s Chief Commercial Officer, stated during a recent presentation that the company saved over $500 million in its call center operations last year thanks to AI technology.
These comments arrive shortly after Microsoft conducted its third major round of layoffs this year, cutting more than 9,000 jobs and bringing the total number of employees affected in 2024 to approximately 15,000. While the company attributes its AI investments to improved efficiency, such statements risk appearing tone-deaf to those impacted by the job cuts. As the Bloomberg report notes, “For employees who lost their jobs while working at a company that is reporting impressive cost-savings and recording one of its most profitable quarters yet, Althoff’s remarks might come off as tone deaf.”
Tensions were further inflamed by a now-deleted LinkedIn post from Matt Turnbull, a producer at Xbox Game Studios, who suggested that laid-off employees feeling “overwhelmed” by the situation might find emotional and cognitive support through AI tools like ChatGPT and Microsoft Copilot.
It remains unclear whether the layoffs were directly caused by AI replacing human roles or part of broader corporate restructuring following the pandemic. However, the juxtaposition of record profits and widespread layoffs has raised concerns among observers and employees alike.
Microsoft posted $26 billion in profit and $70 billion in revenue in the most recent quarter. Its market valuation has surged to around $3.74 trillion, positioning it just behind Nvidia and ahead of Apple. The company has committed to channeling much of its revenue into AI development, announcing in January a plan to invest $80 billion into AI infrastructure throughout 2025.
While Microsoft continues to hire in specialized areas, particularly in AI research and development, the company is clearly prioritizing top-tier AI talent over traditional roles. As the race for AI dominance intensifies, Microsoft seems more inclined to spend millions securing elite researchers rather than retaining mid-level employees or managers.
