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Microsoft Cuts 15,000 Jobs to Fuel $80 Billion AI Push

Microsoft’s mandate of AI tools for all employees follows more than $500 million in cost savings from automation.

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Microsoft-Layoffs
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Overview

  • Microsoft has eliminated over 15,000 positions in 2025 as it reallocates talent toward AI development and operations.
  • The company is replacing traditional sales specialists with technical solutions engineers to enable earlier AI demonstrations to customers.
  • Julia Liuson has declared that every role will require active use of AI tools like Copilot and that proficiency will factor into performance reviews.
  • Integrating AI into customer support and engineering workflows has delivered more than $500 million in cost savings so far.
  • Microsoft plans to invest around $80 billion this fiscal year to expand its AI infrastructure, including data centers and model development.