New Delhi
After a year of widespread layoffs, Microsoft is preparing for a new phase of hiring focused primarily on artificial intelligence (AI), according to CEO Satya Nadella. Speaking on the BG2 podcast with investor Brad Gerstner, Nadella said the company’s headcount will increase in a “smarter and more leveraged” manner, guided by how AI enhances productivity across its operations.
As of June 2025, Microsoft employed around 2.28 lakh people, a figure that remained nearly steady after several layoffs that cut over 15,000 jobs. Unlike the pre-AI boom period of 2022, when the company expanded its workforce by 22%, current growth will be driven by targeted recruitment in AI-related roles.
Nadella explained that Microsoft is shifting from large-scale hiring to “targeted scaling,” using AI to make smaller teams more efficient. He described this as a continuous “unlearning and learning” phase where employees must integrate AI into daily functions like research, planning, and operations.
Citing an example, Nadella said a Microsoft executive used AI agents to manage fiber-network operations when human hiring couldn’t meet rising demand, demonstrating how technology can amplify output without expanding manpower.
Earlier this year, Microsoft reportedly laid off about 9,000 employees — around 4% of its global workforce — with its gaming division, including Xbox, facing significant cuts. Xbox head Phil Spencer said the restructuring was intended to streamline management and focus on strategic growth.
This renewed hiring drive marks Microsoft’s effort to rebuild its workforce around AI-led innovation and operational agility.
