Microsoft reportedly reduced its Teams workforce to put more people on Copilot

It is common knowledge that Microsoft has fully embraced the generative AI trend that has swept through the tech industry in the past year. Collaborating with OpenAI, Microsoft has incorporated its Copilot AI chatbot into various productivity applications, software development tools, and Teams online communication and collaboration platforms.

According to a recent report from Business Insider, Microsoft is downsizing its workforce dedicated to Teams, a highly popular service. It appears that some employees have been reassigned to work on Copilot instead.

Business Insider claims to have obtained a leaked memo on which the report is based. It states that the central team will focus on developing Copilot and the “future of work.”The report also mentions potential layoffs, but the number of Microsoft employees affected was not disclosed by BI.

Microsoft’s head of communications, Frank Shaw, acknowledged that the company is increasing its focus on Copilot in response to inquiries. However, he emphasized that Microsoft’s top priority remains its Teams efforts. He also noted that Copilot for Teams is the most highly utilized service among all Copilot offerings, based on internal surveys. When asked about potential layoffs resulting from this reorganization, Shaw declined to comment.

Recently, Microsoft revealed their decision to unbundle Teams from Microsoft 365 globally. This came after the company had previously made Teams available separately in the EU and Switzerland starting in 2023, in response to the European Commission’s requirements. Teams will now be offered as a standalone service in addition to being included in Microsoft 365 bundles.