{"id":1297564,"date":"2025-07-11T11:51:44","date_gmt":"2025-07-11T06:21:44","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1297564"},"modified":"2025-07-11T11:52:20","modified_gmt":"2025-07-11T06:22:20","slug":"microsoft-saved-rs-4500-crore-after-firing-9000-employees-using-ai","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/microsoft-saved-rs-4500-crore-after-firing-9000-employees-using-ai\/","title":{"rendered":"Microsoft Saved Rs 4500 Crore After Firing 9000 Employees &amp; Using AI"},"content":{"rendered":"\n<p>Microsoft is doubling down on artificial intelligence as both a cost-saving engine and growth enabler. A recent Bloomberg report revealed that the tech giant saved more than $500 million last year <strong>in its call centers alone<\/strong> by deploying AI, even as it laid off thousands to streamline operations and fund further AI expansion.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/07\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpeg\" alt=\"Microsoft Saved Rs 4500 Crore After Firing 9000 Employees &amp; Using AI\" class=\"wp-image-1297580\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/07\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpeg 1024w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/07\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1-300x169.jpeg 300w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/07\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1-768x432.jpeg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">$500 Million Saved Through AI in Customer Support<\/h3>\n\n\n\n<p>Microsoft has begun using AI tools to automate and manage customer interactions, <a href=\"https:\/\/www.reuters.com\/business\/microsoft-racks-up-over-500-million-ai-savings-while-slashing-jobs-bloomberg-2025-07-09\/\">especially<\/a> with smaller clients, according to Chief Commercial Officer Judson Althoff. By automating segments like customer service and inside sales, the company significantly reduced operational costs\u2014saving over half a billion dollars in just one year. This effort reflects AI\u2019s growing role in real-world enterprise workflows.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Layoffs Reflect Restructuring Around AI<\/h3>\n\n\n\n<p>Last week, Microsoft announced that nearly <strong>4 percent<\/strong> of its global workforce\u2014approximately 9,000 jobs\u2014would be eliminated. This comes on top of 6,000 layoffs earlier in May. These job cuts coincide with the company\u2019s aggressive push to reallocate funds toward AI infrastructure, especially data centers that power large language models like OpenAI\u2019s GPT-4, which Microsoft has integrated across its platforms.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">AI Accelerating Product Development<\/h3>\n\n\n\n<p>AI is not only transforming customer service. According to the Bloomberg report, Althoff stated that <strong>35 percent of the code<\/strong> used in Microsoft\u2019s new products is now being generated by AI. This has helped reduce time-to-market and improve engineering productivity, providing tangible returns on Microsoft\u2019s heavy AI investment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">$80 Billion Earmarked for AI Infrastructure<\/h3>\n\n\n\n<p>To support its AI ambitions, Microsoft plans to spend <strong>$80 billion<\/strong> in capital expenditures this fiscal year\u2014most of it focused on building and expanding data centers. These facilities are critical for alleviating the ongoing capacity bottlenecks that constrain the delivery of AI-based services.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Balancing Innovation With Cost-Cutting<\/h3>\n\n\n\n<p>While Microsoft and other tech giants continue to pour billions into AI, they are also trimming expenses in traditional roles to protect profit margins. This dual approach\u2014aggressive investment in emerging tech paired with large-scale layoffs\u2014signals a profound shift in how Big Tech operates, optimizes, and scales in the AI age.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Microsoft is doubling down on artificial intelligence as both a cost-saving engine and growth enabler. A recent Bloomberg report revealed that the tech giant saved more than $500 million last year in its call centers alone by deploying AI, even as it laid off thousands to streamline operations and fund further AI expansion. $500 Million [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":1297580,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[131,109],"class_list":["post-1297564","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-layoffs","tag-microsoft"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Microsoft Saved Rs 4500 Crore After Firing 9000 Employees &amp; Using AI - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/microsoft-saved-rs-4500-crore-after-firing-9000-employees-using-ai\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Microsoft Saved Rs 4500 Crore After Firing 9000 Employees &amp; Using AI - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"Microsoft is doubling down on artificial intelligence as both a cost-saving engine and growth enabler. A recent Bloomberg report revealed that the tech giant saved more than $500 million last year in its call centers alone by deploying AI, even as it laid off thousands to streamline operations and fund further AI expansion. $500 Million [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/trak.in\/stories\/microsoft-saved-rs-4500-crore-after-firing-9000-employees-using-ai\/\" \/>\n<meta property=\"og:site_name\" content=\"Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"article:published_time\" content=\"2025-07-11T06:21:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-11T06:22:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2025\/07\/satya-nadella-talking-to-the-press-new-delhi-2014-1280x720-1-1024x576-1.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Mohul Ghosh\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mohul Ghosh\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/trak.in\/stories\/microsoft-saved-rs-4500-crore-after-firing-9000-employees-using-ai\/\",\"url\":\"https:\/\/trak.in\/stories\/microsoft-saved-rs-4500-crore-after-firing-9000-employees-using-ai\/\",\"name\":\"Microsoft Saved Rs 4500 Crore After Firing 9000 Employees &amp; 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