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BUSINESS
The statement comes after Microsoft has already had no less than four major layoffs this year. The most recent was for about 9,000 employees, including the Xbox gaming group and the sales team.
In 2025, Microsoft is going through a rapid transformation. After laying off more than 15,000 workers this year, IT giant is now encouraging its remaining employees to 'invest in their own AI skills'. This was disclosed in the company's internal communications. The announcement follows Microsoft's at least four significant layoffs so far this year. The latest involved over 9,000 workers, including the sales staff and Xbox games group.
Julia Liuson, president of the Microsoft Developer Division, has advised managers to take artificial intelligence into account when evaluating overall performance and contribution. Liuson also stated that "using AI is no longer optional — it's core to every role and every level" in internal emails that Business Insider was able to access.
Although Microsoft's performance standards can differ from team to team, a person familiar with the subject says that some teams are considering including a more formal criteria about the use of internal AI tools in employee performance assessments for the upcoming fiscal year. The speaker expressed their desire to stay anonymous and acknowledged the delicate nature of the subject. "The measure is just one example of Microsoft's increasing push to incorporate AI into everyday workflows," the person said.
Microsoft planned to replace the majority of its recent layoffs in traditional sales roles with more technical "solutions engineers" who could show clients AI products in person.