Microsoft tightens focus on AI proficiency amid mass layoffs; says "AI is core to every role"
Julia Liuson, president of the Developer Division, told managers that AI usage must now be factored into performance evaluations at all levels. In an internal memo, she emphasized that "using AI is no longer optional — it's core to every role."
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Microsoft is now making AI proficiency a mandatory criterion in employee performance reviews, signaling the company's full-throttle push into artificial intelligence amid widespread job cuts.
As per reports by The Information and Business Insider, Microsoft has laid off over 15,000 employees across multiple business units in 2025 alone, with the latest wave affecting approximately 9,000 roles, particularly in the Xbox gaming and sales divisions. This comes after earlier job cuts in May and June, which included 6,000 and several hundred roles, respectively. Around 850 jobs were slashed in Washington state, the company’s home base.
While trimming its workforce, Microsoft is also ramping up its internal expectations around AI. Julia Liuson, president of the Developer Division, told managers that AI usage must now be factored into performance evaluations at all levels. In an internal memo, she emphasized that "using AI is no longer optional — it's core to every role."
This move is part of Microsoft’s strategy to drive deeper adoption of its AI-powered productivity tools, particularly Copilot. The company is reportedly exploring formal AI usage metrics as part of next fiscal year's performance reviews, potentially introducing specific benchmarks employees must meet.
Microsoft is also encouraging its remaining workforce to “invest in your own AI skilling”, highlighting a future where success and possibly job security may increasingly depend on how effectively employees leverage AI in their day-to-day roles.
