Microsoft is undergoing rapid transformation in 2025. After cutting over 15,000 jobs this year, the tech giant is now urging its remaining workforce to sharpen their AI capabilities. Internal communications make it clear: adopting AI tools and techniques is no longer optional. Regardless of role or seniority, every employee is now expected to integrate artificial intelligence into their daily work.
Julia Liuson, head of Microsoft’s Developer Division, has informed managers that AI usage will become a key factor in evaluating employee performance. Going forward, an individual’s ability to effectively leverage tools such as Microsoft Copilot may influence their performance assessments—and potentially impact their role within the company.
Microsoft’s aggressive shift toward AI coincides with a massive $80 billion investment in building out its AI infrastructure this year. While this represents a major financial commitment, it also signals the company’s intent to trim costs elsewhere—resulting in significant job reductions.
The latest wave of layoffs, impacting roughly 9,000 workers, dealt a heavy blow to the Xbox gaming group and various sales departments. Previous rounds in May and June saw an additional 6,000 roles eliminated, along with several hundred more in smaller cuts.
The global tech sector has experienced a major downsizing trend in 2025, with more than 100,000 positions eliminated across leading firms. Influenced by changing market conditions, efforts to reduce expenses, and an intensified emphasis on artificial intelligence and automation, industry heavyweights like Microsoft, IBM, and Intel have all scaled back their employee numbers.
