Microsoft’s new security chief Hayete Gallot is overhauling its cyber business around AI, replacing execs and cutting roles

by | Jul 16, 2026 | Latest E-commerce News & Updates

Microsoft’s new security chief Hayete Gallot is overhauling its cybersecurity business to cash in on AI-hacking fears, steering teams toward AI security tools while cutting traditional products, according to The Information. Gallot has replaced at least eight senior executives from the prior leadership, cut several hundred roles in the 10,000-strong security group, and consolidated engineering teams. She is prioritizing AI-powered products like the OpenAI-based Security Copilot, code-vulnerability scanning, and Defender, while de-emphasizing older tools like Sentinel to jumpstart security revenue. MDASH, Microsoft’s new multi-model bug-finder modeled on how customers use Anthropic’s Mythos, helped drive a record 622 Windows patches in July as it chases AI-cyber spending against Anthropic and OpenAI.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

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