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Market Chatter: Microsoft Overhauls Security Business to Capture AI Demand

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Microsoft (MSFT) is overhauling its cybersecurity business to capitalize on corporate demand for AI-powered security tools, The Information reported Wednesday, citing people with direct knowledge of the changes.

Hayete Gallot, who took over the security business in February, has directed teams to build AI security products while cutting some traditional offerings and consolidating engineering teams, according to the report.

Gallot cut several hundred roles within the security group as part of a broader Microsoft layoff earlier this month, the report said, citing one of the people.

At least nine corporate vice presidents who reported to former security head Charlie Bell have left the company this year, according to someone with knowledge of the moves cited in the report.

The Information reported, citing a longtime Microsoft executive, that Gallot is prioritizing products such as Security Copilot and tools that scan code for vulnerabilities, while reducing investment in lower-revenue products like Sentinel.

Microsoft did not immediately respond too a request for comment from.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: $395.44, Change: $+10.51, Percent Change: +2.73%

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