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Microsoft Names Judson Althoff as CEO of Commercial Business, Nadella Refocuses on Technology

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Microsoft announced on Wednesday that Chief Commercial Officer Judson Althoff will become CEO of its commercial business, marking a significant leadership shift aimed at strengthening the company’s focus on artificial intelligence and cloud technology.

In his new role, Althoff will oversee a newly created organization that brings together sales, marketing, and operations under one umbrella. This change allows CEO Satya Nadella to dedicate more of his time to Microsoft’s core technological priorities, including AI, data center infrastructure, and systems innovation.

NADALLA TO FOCUS ON TECH LEADERSHIP

In a blog post, Nadella said the move will enable him and the company’s top engineers to be “laser focused on our highest ambition technical work — across our datacenter buildout, systems architecture, AI science, and product innovation.”

The restructuring reflects Microsoft’s broader ambition to dominate the AI platform race, integrating advanced AI models across its products and cloud ecosystem.

Althoff, who joined Microsoft in 2013 as president of Microsoft North America, will now also lead a new commercial leadership team comprising executives from engineering, marketing, sales, operations, and finance. Nadella praised him for his deep customer relationships and strong operational leadership.

DRIVING THE NEXT PHASE OF GROWTH

“We are in the midst of a tectonic AI platform shift,” Nadella said. “It requires us to manage and grow our at-scale commercial business today, while building the new frontier and executing flawlessly across both.”

The move comes as Microsoft continues to reorganize its operations around AI. In August, the company merged its developer and business AI marketplaces into a single platform called Microsoft Marketplace, designed to make it easier for corporate clients to buy, integrate, and deploy AI tools.

The commercial division, which includes Microsoft Azure, Office 365, and enterprise services, remains central to the company’s growth strategy. Analysts see Althoff’s appointment as a signal that Microsoft is tightening its execution on both enterprise expansion and AI integration.

CONTINUING AI MOMENTUM

Under Nadella’s leadership, Microsoft has transformed from a software company into one of the world’s leading cloud and AI infrastructure providers, with deep partnerships with OpenAI and major investments in Copilot across its Office and Windows products.

By separating commercial and technical leadership, Microsoft is betting that sharper focus will help sustain its momentum in a competitive landscape that includes Google Cloud, Amazon Web Services, and Meta’s AI tools.

Microsoft saves $500 million with AI amid job cuts, Bloomberg reports

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Microsoft (MSFT.O) saved over $500 million last year in its call centers alone by leveraging artificial intelligence, Bloomberg News reported Wednesday. This comes as the tech giant announced plans to cut nearly 4% of its workforce to control costs amid heavy investments in AI infrastructure. In May, Microsoft disclosed layoffs affecting around 6,000 employees.

AI tools have boosted productivity across various departments, including sales, customer service, and software engineering. According to Microsoft’s Chief Commercial Officer Judson Althoff, AI is now managing interactions with smaller customers, a nascent effort already generating tens of millions of dollars in savings, Bloomberg reported citing an insider.

Althoff also revealed that AI contributed to 35% of the code for new products, speeding up launch times. Microsoft declined to comment on the report when contacted by Reuters.

This fiscal year, Microsoft has allocated $80 billion in capital spending, primarily to expand data centers to address capacity constraints for AI services. As big tech companies ramp up AI investments, they are simultaneously cutting costs in other areas to maintain profitability.