Microsoft Predicts Businesses Can Fire Thousands Due To AI Agent Integration


Radhika Kajarekar

Radhika Kajarekar

Apr 30, 2025


According to Microsoft, AI agents will soon be standard in offices, acting as coworkers who streamline processes and automate tasks.

This AI revolution is as important as the Industrial Revolution or the emergence of the internet, according to Microsoft’s 2025 Annual Work Trend Index.

Microsoft To Replace Workers With AI Agents?

This future is referred to by Microsoft as “intelligence on tap,” which refers to accessible, scalable AI that enables companies to meet demands that surpass human capacity.

According to a Microsoft survey, 82% of company executives think 2025 will be a critical year for determining how to organize their personnel and business processes in light of AI developments.

AI is already being used by 46% of businesses to completely automate some business processes, especially in marketing, product development, and customer service.

Microsoft forecasts the rise of the “agent boss”—a position in which people oversee and guide AI agents to perform tasks more efficiently.

According to Microsoft, 83% of executives think AI will enable employees to concentrate more on high-value, strategic tasks.

While 78% of leaders intend to hire for AI-related roles, 33% are thinking about cutting staff despite AI’s potential to increase productivity.

Workers Must Get Along With AI Otherwise Risk Falling Behind

Microsoft stresses that workers need to get used to working with AI agents, and those who don’t run the risk of falling behind.

The report asserts that organizations must confront the difficulty of getting ready for a future enhanced by AI, given the growing capabilities of AI agents,  “Human ambition, creativity, and ingenuity will continue to create new economic value and opportunity as we redefine work and workflows.”

Recently, we reported that Microsoft is enforcing a strict overhaul of its employee performance policies, including a two-year rehire ban for underperformers and restrictions on internal transfers, as part of its push to build high-performing teams. These new rules were shared by Chief People Officer Amy Coleman in an internal email to company managers.

The updated framework introduces a Performance Improvement Plan (PIP) under which employees not meeting expectations must improve within a set timeline or opt for a voluntary separation package. Employees placed on a PIP or with low performance ratings (categorized as “zero or 60% rewards outcomes”) will not be eligible for internal moves. If such employees exit, they will also face a two-year rehire ban.

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Radhika Kajarekar
Radhika Kajarekar
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