A variable structure controller is developed for an AC servo motor used in CNC milling machines. The designed controller is implemented as an outer loop controller to a factory designed motor-servopack system. The robustness parameter is tuned for a fast response when the speed tracking error is large, while it is tuned for small oscillations when the speed tracking error is small. The designed controller is installed on a CNC machine using a PC. Cutting experiments show improved performance over the factory-designed controller.