Microsoft to resume hiring with AI-driven focus, says CEO Satya Nadella

New Delhi: After a year marked by significant layoffs, Microsoft is set to expand its workforce once again, this time with a strategic emphasis on artificial intelligence. Speaking on the BG2 podcast with investor Brad Gerstner, CEO Satya Nadella said the company’s hiring will be “smarter and more leveraged,” guided by AI’s growing role in enhancing productivity.

“We will grow our headcount,” Nadella confirmed, noting that future recruitment will align with how AI transforms operations across the organisation. As of June 2025, Microsoft’s employee count stood at approximately 2.28 lakh, largely unchanged following job cuts that affected over 15,000 workers. This marks a sharp contrast to the pre-AI boom in 2022, when the company’s workforce grew by 22 per cent.

The slowdown in hiring coincided with Microsoft’s pivot towards AI infrastructure, partnerships, and flagship tools such as Microsoft 365 Copilot and GitHub Copilot. Nadella described the current phase as one of “targeted scaling,” where smaller teams can deliver greater output through AI integration. He called it an “unlearning and learning process,” urging employees to embrace AI across all aspects of their work, from planning and research to execution.

Citing a recent example, Nadella said a Microsoft executive used AI agents to manage fibre-network operations amid staffing constraints, demonstrating how technology can amplify team capabilities.

Earlier this year, Microsoft reportedly laid off around 9,000 employees, roughly 4 per cent of its workforce. According to The Seattle Times, the company’s Xbox division was among the hardest hit. In a message to staff, Xbox chief Phil Spencer said the restructuring aimed to streamline operations and focus on strategic growth, in line with Microsoft’s broader push to flatten management layers and boost agility.

(Inputs from IANS)