The reported overhaul includes hundreds of job cuts and a shift in resources toward Security Copilot, code vulnerability scanning and AI agent management tools.
Microsoft is reportedly reorganizing its 10,000-plus security division under new security chief Hayete Gallot, replacing at least eight executives, cutting hundreds of roles and redirecting resources toward AI-centered products. The changes point to a sharper emphasis on Security Copilot, code vulnerability scanning and AI agent management tools, while Sentinel is said to be receiving less attention. The restructuring adds detail to Microsoft’s broader push to embed artificial intelligence across cybersecurity operations. Microsoft also said its July fix for a record 622 vulnerabilities was partly driven by the MDASH AI tool, underscoring how the company is using automation to accelerate security work at scale. The development matters to parts of the digital-asset industry because Microsoft’s enterprise security stack is widely used by banks, asset managers and fintech firms that run crypto-related operations. Available reporting, however, has not linked the personnel changes to any crypto assets, tokens or immediate impact on crypto-native projects.