Microsoft Saves $500 Million with AI — But Cuts 6,000 Jobs

Microsoft says that by using AI in both its support and development teams, it has saved more than $500 million in operational costs. The company used generative AI tools to automate coding, writing documentation, and helping customers, which cut down on a lot of work.

But there was a problem: more than 6,000 people lost their jobs because of it, which led to criticism that AI was taking jobs away from people.

Microsoft calls this a "strategic reallocation of resources," but analysts say it shows a trend in tech: AI efficiency vs. workforce stability.

This shows that even the best companies are trying to cut costs while still coming up with new ideas, and it's not without problems.