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Microsoft says AI saved Rs 4,285 crore just days after laying off 9,000 workers

Microsoft says AI saved Rs 4,285 crore just days after laying off 9,000 workers

India Today10-07-2025
Microsoft is doubling down on artificial intelligence (AI) as a core driver of efficiency and productivity across its operations. The company is using AI tools to streamline tasks and boost productivity in sales and customer service, automating repetitive work and improving customer interactions. However, the AI transformation comes amid mass layoffs as the company slashes thousands of jobs. Microsoft's Chief Commercial Officer, Judson Althoff, recently told employees (via Bloomberg), that AI had saved the company over $500 million (approximately Rs 4,285 crore) in its call centre operations alone last year. The savings, he said, came alongside improved customer satisfaction and internal efficiency. Althoff's comments, made during a company presentation, highlight how Microsoft is all in on AI to transform its functions ranging from sales and customer service to software development.advertisementThe company is reportedly using its Copilot AI assistant to help sales teams generate more leads, close deals faster, and boost revenue by 9 per cent. The company revealed AI now writes 35 per cent of code for new products, even accelerating launch times. Microsoft's GitHub Copilot tool, an AI-powered coding solution, has also gained significant traction with more than 15 million users globally.
Microsoft is also testing AI in customer interactions, particularly with smaller clients, where it is already generating tens of millions in revenue.AI over human employeesHowever, this AI-fuelled transformation at Microsoft is coming at a human cost. Just days before these internal claims about AI's growing influence surfaced, Microsoft confirmed a fresh round of layoffs impacting approximately 9,000 employees. This is the company's third major workforce reduction in recent months and affects nearly 4 per cent of its global staff.The layoffs are the largest since the company cut 10,000 jobs in 2023. A Microsoft spokesperson said the cuts are part of 'organisational changes' to streamline teams, reduce managerial layers, and increase productivity using new technologies.Notably, Microsoft is not alone. These job cuts follow a wave of similar actions across Silicon Valley, as tech companies are increasingly turning to automation and AI to manage costs and improve output. Companies like Salesforce, Meta, and Alphabet have all cited AI as a reason to re-evaluate hiring needs and job structures. Microsoft CEO Satya Nadella himself stated earlier this year that 20–30 per cent of the company's code is now being written by AI.- Ends
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