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Microsoft

AI Still Costs More Than Human Workers, Says Nvidia Executive Bryan Catanzaro

/ Human Resource Community

Artificial intelligence may be advancing rapidly, but it is not yet the cheaper alternative to human labour, according to Bryan Catanzaro, a senior executive at Nvidia. He believes companies expecting immediate savings by replacing employees with AI may be misunderstanding the current economics of the technology. Speaking in an interview with Axios, Catanzaro said that for his own team, computing costs significantly exceed staff expenses. His comments challenge the growing belief that layoffs combined with AI adoption automatically improve profitability. The remarks come as major tech firms such as Meta and Microsoft continue reducing headcount while simultaneously pouring billions into AI infrastructure. Meta has reportedly planned workforce cuts of around 10%, impacting nearly 8,000 employees, while also freezing or removing thousands of open positions. Microsoft has also introduced one of its largest voluntary buyout programs in recent years. At the same time, spending on AI is accelerating. According to Morgan Stanley estimates, major technology companies have already invested $740 billion in capital expenditure in 2026, representing a sharp increase from the previous year. Meanwhile, more than 92,000 layoffs have been recorded across the tech sector so far this year. Studies suggest AI still lacks economic efficiency in many job categories. A 2024 study from Massachusetts Institute of Technology found AI automation made financial sense in only 23% of visual-task jobs, while human workers remained the lower-cost option in the majority of cases. Experts say one of the biggest barriers is the high cost of computing power, data centres, and energy required to run large AI systems. Keith Lee of the Swiss Institute of Artificial Intelligence described the situation as temporary, predicting costs may fall sharply over the next few years as hardware and model efficiency improve. However, affordability alone may not be enough. Analysts note that AI systems must also become more reliable, accurate, and easier to integrate into everyday business operations before they can truly replace human workers at scale. For now, Catanzaro’s message is straightforward: replacing people with AI does not automatically mean lower costs, as human labour often remains the more practical and economical choice. Source: Economic Times

AI Still Costs More Than Human Workers, Says Nvidia Executive Bryan Catanzaro Read More »

Microsoft Drops Diversity and Inclusion as Core Criteria in Employee Reviews

/ Human Resource Community

Microsoft has removed diversity and inclusion as mandatory companywide priorities in employee performance evaluations, signalling a major shift from the commitments it amplified after the 2020 George Floyd protests, according to reports from The Verge and Game File. The update, rolled out last month through Microsoft’s internal Connect system, eliminates required questions that previously asked employees to outline how their work contributed to a “more diverse and inclusive Microsoft.” These DEI-related prompts, along with similar security-impact questions, were once integral to annual reviews. The company announced the revision quietly via a Viva Engage post, describing it as part of a “simplification” of its core priorities—now simply called “goals.” Adding to the changes, Wired reported that Microsoft will not release its annual diversity and inclusion report this year, ending more than a decade of public transparency on workforce representation. Chief Communications Officer Frank Shaw said the company is moving toward “more dynamic and accessible” storytelling formats, even as internal HR documents now refer only to “inclusion,” not “diversity.” The policy shift comes after growing political pressure, including an executive order by former President Donald Trump targeting corporate DEI programs. Microsoft had already laid off its internal DEI team in July 2024, with the team lead reportedly noting that such initiatives were no longer considered “business critical” as they were in 2020. Employee reactions to the latest rollback have been divided. Some workers told The Verge the initial DEI requirements always felt “performative,” while others saw the retreat as expected—especially after CEO Satya Nadella invited Elon Musk to speak at Microsoft Build, angering employee groups like GLEAM, which represents LGBTQIA+ staff and allies. Despite these moves, Microsoft spokesperson Jeff Jones maintained: “Our D&I commitments remain unchanged. Our focus on diversity and inclusion is unwavering.” Source: TOI

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Google reportedly cuts over 200 AI contractors amid unionisation concerns

/ Human Resource Community
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Google has allegedly laid off more than 200 contract workers engaged in its artificial intelligence projects, including the development of Gemini and AI Overviews, according to a report by WIRED. The layoffs, carried out in at least two phases last month, came with minimal or no notice, leaving many workers abruptly locked out of their roles. “I was just cut off,” said Andrew Lauzon, a contractor who received an email on August 15 notifying him that his contract had ended. Lauzon, employed by Hitachi-owned GlobalLogic since March 2024, had been involved in training Google’s Gemini chatbot and related AI tools. He said he was told the termination was due to a “ramp-down on the project,” but questioned the security of such precarious employment. Many of the affected contractors, some holding advanced degrees like master’s and PhDs, were part of a group known as “super raters” — workers tasked with reviewing and refining AI responses to make them more accurate and natural. Contractors stressed the importance of their work in shaping Google’s AI products, including the AI Overviews feature that provides summarized search results. “We play an incredibly vital role,” said one rater, noting that engineers rely on their feedback to fine-tune the systems. Google, however, has distanced itself from the job cuts, clarifying that the affected individuals were employees of GlobalLogic or its subcontractors, not Alphabet. “As the employers, GlobalLogic and their subcontractors are responsible for the employment and working conditions of their employees,” Google spokesperson Courtenay Mencini said. The development comes at a time when Google is doubling down on AI investments to compete with rivals such as OpenAI and Microsoft, raising questions about job security in the rapidly evolving AI industry. Source: IANS

Google reportedly cuts over 200 AI contractors amid unionisation concerns Read More »

Microsoft to enforce three-day office work policy from 2026

/ Human Resource Community
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Microsoft has announced that starting next year, employees will be required to work from office at least three days a week, marking a significant shift in its post-pandemic work policy. In a blog post on Tuesday, Amy Coleman, Microsoft’s Chief People Officer, detailed that the new hybrid work mandate will be introduced in three phases. The rollout will begin with staff based near the company’s Redmond, Washington headquarters, before extending to other U.S. locations and international offices. By February 2026, employees residing within 50 miles of the Redmond campus will need to be onsite for a minimum of three days each week. Timelines for other U.S. offices will follow, while planning for international employees is expected to commence next year. The move aligns Microsoft with other major tech companies, including Amazon, that are scaling back remote work flexibility and urging employees to return to office spaces. The pandemic had initially accelerated the widespread adoption of work-from-home policies across the industry, but firms are now reassessing their long-term workplace strategies. Source: Reuters  

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Microsoft to Mandate Office Attendance 3 Days a Week Starting 2026

/ Human Resource Community

Microsoft is preparing to roll out a new return-to-office (RTO) policy that will require employees to spend at least three days a week in the office beginning January 2026. The mandate applies to staff living within 50 miles of its Redmond, Washington, headquarters, home to the bulk of its 228,000-strong global workforce. Depending on team structures and leadership decisions, some groups may face even stricter requirements—four or five days in person each week, according to Business Insider. The company is expected to formally announce the changes in September 2025, giving employees a few months to prepare. While Microsoft will allow applications for exceptions, the criteria and approval process remain unclear. This shift marks a departure from the company’s pandemic-era hybrid model, where employees could work remotely for up to half their time without managerial approval. In practice, many had been working from home far more frequently. The move aligns Microsoft with other tech majors that have rolled back remote flexibility. Amazon now demands five full days in the office, while Google and Meta enforce three. The timing, however, has sparked criticism: morale at Microsoft is reportedly at historic lows after about 15,000 layoffs this year, despite the company posting a staggering $27 billion in quarterly profits, as noted by The Verge. Some employees and analysts view the policy as a “stealth layoff strategy”—designed to push workers to resign voluntarily rather than undergo formal job cuts. Those unwilling to adjust to the new attendance rules may opt to leave, sources told Business Insider. Adding to the controversy, Microsoft continues to market its remote collaboration tools like Teams and Office 365 as productivity boosters, even as it moves away from flexible work for its own staff. Practical hurdles also loom large. Reports suggest the company’s offices face space shortages, limited power supply, and insufficient meeting rooms, despite a $5 billion campus expansion project. For now, the new mandate highlights the growing tension between employee preferences for hybrid work and tech giants’ renewed push for office-centric culture. Source: Economic Times Photo Credit: iStock  

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The New York Times Signs AI Content Licensing Deal with Amazon

/ Media Entertainment & Art Community
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In a notable move marking its first generative AI licensing agreement, The New York Times has partnered with Amazon to allow the use of its editorial content in training the tech giant’s artificial intelligence systems. Announced nearly two years after The Times filed a high-profile copyright lawsuit against OpenAI and Microsoft, the deal reflects a shift toward monetizing content through structured agreements with major AI players. While financial details were not disclosed, the collaboration is expected to enhance a range of Amazon services, including its smart assistant Alexa. According to a statement from The Times, the agreement covers a wide variety of content, including its main news articles, recipe-driven content from NYT Cooking, and coverage from The Athletic, its sports media platform. This content will be integrated across different Amazon customer touchpoints. “When it fits the user experience on Amazon platforms, they will provide direct links back to our products, giving users access to the full New York Times experience,” said spokesperson Danielle Rhoades Ha in a statement to TechCrunch. The deal marks Amazon’s first official partnership of this kind, while other AI companies like OpenAI have already struck similar agreements with media organizations such as The Washington Post, The Atlantic, The Guardian, News Corp, and Axel Springer. This move is particularly significant considering The Times’ previous accusations against OpenAI and Microsoft for allegedly using its articles to train AI systems without authorization or compensation. Both companies have denied any misconduct. Reiterating its position, The Times said it remains committed to protecting the value of its journalism, whether through legal action or through commercial agreements. Source: Techcrunch

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Microsoft, Gates Foundation Partner with Maharashtra Government for Digital Governance

/ Governance Community

Microsoft and the Gates Foundation have joined forces with the Maharashtra government to establish a digital governance model, focusing on innovation, women empowerment, and sustainable energy. Microsoft co-founder Bill Gates, along with representatives from the Gates Foundation, met Maharashtra Chief Minister Devendra Fadnavis to discuss initiatives, including setting up an Innovation City in Navi Mumbai and empowering 25 lakh women to become self-employed. As part of the collaboration, the Gates Foundation will provide technical and financial support, with Gates assuring the launch of a digital governance pilot project in Gadchiroli district. Additionally, the Foundation will partner with social, government, and corporate organizations to drive sustainable energy initiatives in Maharashtra. Gates emphasized the state’s potential for global scalability, especially in helping farmers access electricity during the day. A key highlight of the discussion was the Lakhpati Didi initiative, which aims to transform 25 lakh women into millionaires. Fadnavis also briefed Gates on Maharashtra’s flagship Ladki Bahin Yojana, under which eligible women will receive ₹1,500 per month through direct benefit transfer (DBT). Gates expressed strong support for digitizing women’s financial transactions, reinforcing his commitment to economic empowerment and financial inclusion. Source: Hindustan Times

Microsoft, Gates Foundation Partner with Maharashtra Government for Digital Governance Read More »

EU Initiates Complaints Against Microsoft’s 365 Education Suite Over Privacy Concern

/ Education Community

Microsoft is currently facing two complaints in the European Union (EU) regarding its online education software, 365 Education. According to a report by Reuters, the latest charges against the US-based tech giant have been brought to the Austrian privacy watchdog by the privacy advocacy group NOYB. The group has urged the Austrian Data Protection Authority to investigate these complaints and potentially impose a fine on Microsoft. What is Microsoft 365 Education Suite? During the COVID-19 pandemic, online educational programs gained popularity as schools transitioned to remote teaching. Microsoft’s 365 Education suite offers various tools for students, including Word, Excel, Microsoft Teams, PowerPoint, and Outlook. Complaints Against Microsoft’s 365 Education Suite First Complaint: The advocacy group NOYB alleged that Microsoft shifted the burden of complying with EU data privacy laws (GDPR) onto schools. According to NOYB, schools cannot adequately manage student data under these regulations. NOYB lawyer Maartje de Graaf stated: “Under the current system that Microsoft is imposing on schools, your school would have to audit Microsoft or give them instructions on how to process pupils’ data. Everyone knows that such contractual arrangements are out of touch with reality. This is nothing more but an attempt to shift the responsibility for children’s data as far away from Microsoft as possible.” Second Complaint: The second complaint centers around cookies installed in Microsoft’s 365 Education suite that advertisers use to track consumers. NOYB lawyer Felix Mikolasch expressed concerns: “Our analysis of the data flows is very worrying. Microsoft 365 Education appears to track users regardless of their age. This practice is likely to affect hundreds of thousands of pupils and students in the EU and EEA (European Economic Area).” EU’s Previous Warnings to Microsoft Last month, the EU warned Microsoft that it could impose a fine of up to 1% of its global annual revenue if it fails to provide requested information about the risks associated with its generative AI tools in the Bing search engine. In March, the EU asked tech giants, including Microsoft, to provide details on how they manage risks from AI tools. Microsoft has been accused of dodging questions about its “Copilot in Bing” and “Image Creator” features, which the EU fears may violate new laws by spreading misinformation and manipulating voters.  

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Former Microsoft HR VP Chris Williams Advocates for Employee Freedom: Embracing Multiple Jobs and Personal Pursuits

/ Human Resource Community

Chris Williams, the former Vice President of Human Resources at Microsoft, has advocated for the acceptance of employees engaging in multiple jobs. Williams, now a leadership advisor, conveyed a clear message to employers through an article published by Business Insider India, emphasizing that employers do not own the lives of their employees. Williams asserted that the concept of employees working multiple jobs is deeply ingrained in the fabric of the working world. He highlighted its prevalence by citing examples, including that of his mother who worked two jobs to support her children through college. The former HR head discussed the advantages of the work-from-home model, attributing its rise to the increased opportunity for individuals to pursue multiple jobs. He expressed that it is unrealistic for managers to believe their claim to employees’ time is exclusive. However, he acknowledged potential issues, particularly when employees work for competitors or misuse confidential information. Williams posed a crucial question for employers: whether the employee is effectively fulfilling their primary job responsibilities. He stressed that if an employee is underperforming, the focus should be on addressing the deficit and holding them accountable for deliverables. Furthermore, Williams emphasized that what employees do outside of work, unless it directly affects job performance, is not the employer’s concern. He urged employers to prioritize results and performance, stating that if an employee falls short, the focus should be on problem-solving rather than interference in their personal pursuits. Williams encouraged managers to celebrate the success of their employees, even acknowledging and appreciating their engagement in secondary jobs. The underlying theme of his message is the need for a results-oriented approach, valuing performance over personal matters outside the scope of employment.

Former Microsoft HR VP Chris Williams Advocates for Employee Freedom: Embracing Multiple Jobs and Personal Pursuits Read More »

Microsoft Enlists Former OpenAI CEO Sam Altman to Lead New Advanced AI Research Team

/ Human Resource Community

Microsoft has made a significant move in the field of artificial intelligence (AI) by hiring former OpenAI CEO Sam Altman and co-founder Greg Brockman to lead a newly established advanced AI research team. This development was announced by Microsoft CEO Satya Nadella, and it follows the recent appointment of Emmett Shear as CEO by OpenAI’s board, a decision that went against the wishes of some investors who sought the reinstatement of Sam Altman, a co-founder of OpenAI since its establishment in 2015. Satya Nadella expressed great excitement about the addition of Sam Altman and Greg Brockman to Microsoft, stating, “We’re extremely excited to share the news that Sam Altman and Greg Brockman, together with colleagues, will be joining Microsoft to lead a new advanced AI research team.” Nadella also hinted that the term “colleagues” suggests Microsoft might be planning to bring in other former OpenAI employees who departed over the weekend. Microsoft has invested significant financial resources in OpenAI, and Nadella emphasized the company’s ongoing commitment to its partnership with the startup. He mentioned, “We remain committed to our partnership with OpenAI and have confidence in our product roadmap, our ability to continue to innovate… and in continuing to support our customers and partners.” In response to the move, Sam Altman acknowledged his new role at Microsoft in a post on X, quoting Nadella and indicating continuity with the mission. Nadella responded by hinting at Altman’s role at Microsoft, noting the company’s experience in providing founders and innovators the space to build independent identities and cultures within the larger Microsoft ecosystem. He cited examples such as GitHub, Mojang Studios, and LinkedIn as instances where this approach has been successful. This strategic move by Microsoft not only bolsters its position in the AI research landscape but also reflects the dynamics of the tech industry, with companies actively seeking and securing top talent to drive innovation and advancements in artificial intelligence.

Microsoft Enlists Former OpenAI CEO Sam Altman to Lead New Advanced AI Research Team Read More »