Microsoft shares $500M in AI savings internally days after cutting 9,000 jobs

image via TechCrunch

July 9, 2025, 11:06 PM

• •Microsoft's chief commercial officer Judson Althoff reported that AI tools are increasing productivity across sales, customer service, and software engineering.
• •Althoff noted that Microsoft saved over $500 million last year in its call center due to AI.
• •These remarks followed Microsoft's third round of layoffs this year, affecting around 15,000 employees.
• •Microsoft closed the first quarter with $26 billion in profit and $70 billion in revenue and plans to invest $80 billion in AI infrastructure by 2025.

Microsoft is experiencing significant cost savings and productivity gains through the use of AI, as stated by Judson Althoff, but these gains come in the wake of substantial layoffs, raising concerns about the company's priorities. The company's first quarter saw record profits and revenues, further intensifying the contrast between financial success and workforce reductions. Microsoft plans to invest heavily in AI infrastructure, signaling a shift towards prioritizing AI-related resources. This creates a challenging dynamic for employees affected by job cuts, highlighting a potential trend of investment in AI researchers over other employees.

Read original article