Microsoft Makes AI a Must for Employees, Ties It to Job Reviews as Layoffs Loom

Microsoft is doubling down on artificial intelligence, telling some employees that using AI tools isn’t optional anymore—it’s a core part of their job. In a recent internal memo, Julia Liuson, a top executive in the Developer Division, said that knowing how to use AI is now as essential as working well with others or communicating clearly. According to reports, this new rule means employees’ performance reviews could depend on how effectively they use AI tools like GitHub Copilot.

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The push comes as Microsoft struggles to get its own workforce to fully embrace AI, even though tools like Copilot haven’t caught on as quickly as competitors’ offerings. The company is even considering tracking how much employees use AI, especially for developers, to make sure they’re keeping up with Microsoft’s big bet on the technology. But this focus on AI is happening alongside growing worries about job cuts, with rumors of more layoffs coming in July 2025.

Reports suggest thousands of jobs, especially in the Xbox division, could be on the chopping block. This follows earlier layoffs in 2025, where over 6,000 workers lost their jobs in May alone. Microsoft seems to be tightening its belt, focusing on AI and cloud tech while scaling back in areas like gaming, where Xbox sales have been sluggish and the Activision Blizzard deal has created financial strain.

Some employees and critics see a contradiction here: Microsoft is pushing AI to boost productivity, but it’s also cutting jobs, partly because of automation. CEO Satya Nadella has championed AI as a way to solve big problems, but the layoffs have sparked debates about whether the company is prioritizing profits over people.

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For now, Microsoft workers are under pressure to get comfortable with artificial intelligence or risk falling behind in their performance reviews. It’s a sign of where the tech industry is heading—AI is changing how we work, and employees are left navigating the balance between embracing new tools and keeping their jobs.