While Microsoft celebrates major cost savings from AI, thousands of employees are left wondering why they were let go.
Big Savings, Tough Timing
Microsoft recently shared that it saved more than $500 million last year in its call centers thanks to AI. The announcement came from Judson Althoff, Microsoft’s Chief Commercial Officer, during a recent internal presentation.
He explained how AI tools like Copilot are making day-to-day work faster across sales, support, and engineering teams.
But the news has been hard to digest for many—especially because it came right after Microsoft laid off over 9,000 employees in a single week.
Layoffs Despite Record-Breaking Profits
This year alone, Microsoft has let go of around 15,000 people, making this its third round of job cuts in 2025.
What’s difficult to ignore is the timing. The layoffs happened not long after the company announced a $26 billion profit and nearly $70 billion in revenue for just one quarter.
Their stock is flying high too—Microsoft’s market value has shot up to about $3.74 trillion, now sitting just behind Nvidia.
So naturally, many are asking:
If the company is doing this well, why are so many people losing their jobs?
A Post That Didn’t Help
To make matters worse, a post from Matt Turnbull, a producer at Xbox Game Studios, didn’t sit well with some.
In a now-deleted LinkedIn post, Turnbull suggested that people impacted by the layoffs could use AI tools like ChatGPT or Copilot to manage the stress and confusion of losing a job.
The comment quickly drew criticism for being insensitive, especially when many were still reeling from the news.
Was It AI That Took the Jobs?
So, was it AI that caused the job cuts?
Microsoft hasn’t confirmed this. There’s no clear statement on whether AI directly replaced employees or if the layoffs were part of a broader effort to “right-size” the company after pandemic-era growth.
But the overlap of rising AI use and falling headcounts has people connecting the dots.
Even if the AI savings didn’t directly cause the layoffs, the optics of the situation are difficult. Cost-cutting through automation, followed by large layoffs during a season of record profits—it’s a tough message to swallow.
Microsoft’s AI Bet Is Just Getting Started
While trimming jobs in some areas, Microsoft is spending heavily in others—particularly in artificial intelligence.
Earlier this year, the company said it plans to invest $80 billion in AI infrastructure by 2025. That includes more data centers, more tools like Copilot, and recruiting top AI researchers around the globe.
They’re not alone. There’s now a race among tech giants to hire the best minds in AI, with salaries climbing into seven figures for the right talent.
What’s the Bigger Picture?
This isn’t just a Microsoft story—it’s a snapshot of what’s happening across the tech industry.
Companies are automating fast. AI is helping teams get more done with fewer people. And while that’s good for efficiency and profit, it’s also creating some uncomfortable realities for workers.
Employees are now asking:
- How secure is my role in an AI-powered workplace?
- Is loyalty still valued?
- What happens when a tool does your job better—and cheaper?
Key Takeaways
Let’s break it down:
- Microsoft saved $500M in customer support thanks to AI tools.
- It also cut more than 9,000 jobs, bringing total layoffs this year to nearly 15,000.
- Profits and stock value are at an all-time high.
- The company is investing $80B in AI infrastructure in 2025.
- Some leadership comments and social posts sparked backlash.
- There’s no confirmation AI caused the layoffs, but the timing raises eyebrows.
Final Thoughts
Microsoft is leaning heavily into AI—and it’s working. But how that success is balanced with taking care of people will shape how the company is viewed moving forward.
AI might be the future of work, but it’s also reshaping the present in real, personal ways for many people. For companies, the challenge isn’t just building smarter tools—it’s also about making smarter decisions that consider the people behind the numbers.