Microsoft is rebuilding its security business around AI, and cutting hundreds

https://media.thenextweb.com/2026/04/microsoft-mai-models-openai-independence.avif

Microsoft is the biggest seller of cybersecurity software on the planet. Now it is tearing that business up and rebuilding it around AI.

The overhaul means more AI security tools, fewer traditional products, and merged engineering teams. It has already cost several hundred jobs, The Information reported.

The driver is fear, and money. Companies are worried about AI-powered hacks, and much of their new security spending now goes to Anthropic and OpenAI. Microsoft wants it back.

A new chief, a hard reset

Hayete Gallot leads the changes. She took over Microsoft’s security business in February and reports to Satya Nadella. Before that she spent 15 years at Microsoft, then ran customer experience at Google Cloud.

Her message to staff was blunt. “The entire industry is getting reimagined from the ground up,” she wrote in an internal memo, reported by PYMNTS. “A few months ago, we made those choices....

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