After developers, security is next: Microsoft cuts hundreds in AI-driven restructuring

AI-driven job losses in the IT industry have spread beyond software development into cybersecurity. Microsoft carried out a sweeping reorganization, scaling back its traditional security division in the name of preparing for AI-powered hacking threats. At least nine vice presidents and hundreds of other employees were let go.

The Information, a US technology publication, reported Wednesday that Hayete Gallot, Microsoft's executive vice president for security, has dismissed at least nine corporate vice presidents in the roughly five months since taking the role in February. A corporate vice president at Microsoft is roughly equivalent to a senior director or managing director in Korean corporate hierarchy.

Gallot restructured the division by expanding teams focused on developing AI security products while shrinking traditional security units. In the process, she laid off hundreds of employees from a security workforce of roughly 10,000.

In an internal memo posted that day, Gallot acknowledged the difficulty of recent months. "The past few months have not been easy," she wrote, "but moments like this require clarity, conviction and focus." She added that "the entire industry is being rebuilt from the ground up" and expressed confidence that "Microsoft is well positioned to capitalize on the AI wave."

She also criticized Microsoft's longstanding practice of bundling security services into enterprise software packages, arguing the company needs to offer security as a standalone product.

In practice, Microsoft has already achieved significant results by applying AI to its security operations. In its regular update released Tuesday, Microsoft issued patches addressing 570 security vulnerabilities across its entire product lineup, including Windows and Office — the largest security update in the company's history.

An AI security automation tool called MDASH, developed under Gallot's direction, has also been deployed in real-world operations and is credited with dramatically accelerating the pace of vulnerability detection.

As AI reshapes the industry, security companies are overhauling their products in anticipation of AI models capable of detecting vulnerabilities at an expert level. Security services that were once bundled into broader software packages are being spun off as standalone offerings or updated at a faster pace. Apple, which previously tied security updates to broader software releases, has also announced plans to increase the frequency of its security patches and shorten the release cycle going forward.