Microsoft says slashing jobs and using AI helped it save $500M: report

Group 1 - Microsoft saved over $500 million in call centers by utilizing artificial intelligence last year [1] - The company announced plans to lay off nearly 4% of its workforce as part of cost-cutting measures amid significant investments in AI infrastructure [1][3] - In May, Microsoft had already announced layoffs affecting around 6,000 workers [1] Group 2 - AI tools are enhancing productivity across various segments, including sales, customer service, and software engineering [3] - Microsoft has started using AI to manage interactions with smaller customers, generating tens of millions of dollars in revenue [4][3] - AI is responsible for generating 35% of the code for new products, which accelerates launch times [5] Group 3 - Microsoft has allocated $80 billion in capital spending for this fiscal year, primarily to expand data centers to alleviate capacity bottlenecks for AI services [5] - Major tech companies are heavily investing in AI, viewing it as a key growth driver while simultaneously cutting costs in other areas to protect profits [6]