Microsoft Reports $500M AI Savings Amid Major Workforce Cuts
Microsoft saved over $500 million through artificial intelligence tools in 2024, just days after announcing 9,000 job cuts across the company. Chief Commercial Officer Judson Althoff revealed the massive cost savings during an internal presentation this week, according to Bloomberg reports.
The tech giant achieved these savings primarily through AI-powered call center operations. Althoff told employees that AI tools dramatically boosted productivity across sales, customer service, and software engineering departments. The call center alone generated the entire $500 million in cost reductions.
Microsoft’s AI success comes as the company eliminates thousands of positions worldwide. The timing highlights how artificial intelligence is reshaping corporate operations, potentially replacing human workers while delivering substantial financial benefits.
Althoff’s presentation emphasized AI’s transformative impact on daily business operations. The technology streamlined customer interactions, accelerated software development cycles, and enhanced sales processes throughout Microsoft’s global operations.
The $500 million figure represents significant cost optimization for Microsoft’s commercial divisions. These savings likely contributed to the company’s decision to reduce workforce numbers, as AI tools assume responsibilities previously handled by human employees.
Microsoft continues investing heavily in AI development while restructuring its workforce. The company’s internal data suggests artificial intelligence delivers measurable returns on investment, particularly in customer-facing operations and technical support functions.
