Microsoft announced that integrating AI into its customer support and engineering operations has led to cost savings exceeding $500 million. This revelation comes as the company continues to implement large-scale job cuts across various teams. The internal comments surfaced just a week after Microsoft let go of over 9,000 staff members, marking its third wave of job cuts in 2025. With this latest round, the cumulative number of employees impacted this year has climbed to approximately 15,000.
Microsoft has started leveraging AI to handle engagements with its smaller client base—an emerging strategy that is already bringing in tens of millions in revenue. According to Althoff, AI now contributes to writing 35% of the code for new software projects at the company, significantly accelerating the development process.
He also highlighted AI’s potential to boost employee performance in sales roles. Thanks to Microsoft’s Copilot AI assistant, sales representatives are identifying more prospects, accelerating deal closures, and seeing a 9% increase in revenue generation.
A senior Xbox executive at Microsoft recently encouraged laid-off staff to turn to AI chatbots such as ChatGPT for both emotional guidance and career assistance. This suggestion follows a wave of widespread layoffs at the tech giant, which has seen thousands of employees around the world lose their jobs.
Matt Turnbull, an executive producer at Xbox Game Studios, recently offered his thoughts in a LinkedIn post—now deleted—regarding the emotional toll of losing a job. In the message, he acknowledged the overwhelming nature of such transitions and proposed that AI tools could serve as a helpful support system.
According to Turnbull, leveraging AI for tasks like crafting resumes, mapping out career paths, and applying for new positions could make the process smoother and less stressful. He made it clear that AI isn’t meant to replace human insight but could act as a useful companion when one’s emotional bandwidth is running low.
“I’ve been experimenting with ways to use LLM AI tools (like ChatGPT or Copilot) to help reduce the emotional and cognitive load that comes with job loss,” wrote Turnbull.
