Microsoft to Resume Hiring with AI-Driven Efficiency, Says Nadella

Microsoft plans to expand its workforce after a year of layoffs, CEO Satya Nadella said on the BG2 podcast, according to CNBC. The company’s headcount stood at about 228,000 at the end of June 2025, following reductions totaling roughly 15,000 positions earlier in the year.

Nadella said hiring will resume with “a lot more leverage than pre-AI,” as employees adapt to new ways of working powered by artificial intelligence. Over the next year, staff will “unlearn and relearn” tasks using AI tools integrated into Microsoft 365 and the GitHub Copilot coding assistant, both supported by models from OpenAI and Anthropic.

He added that every aspect of planning and execution at the company now starts with AI. Nadella cited an internal example where a Microsoft executive overseeing network fiber operations developed AI agents to automate maintenance tasks as data center demand increased.

The comments come as Microsoft reported 12% year-over-year revenue growth and its highest operating margin since 2002, following a period of workforce restructuring and continued investment in AI across its products and infrastructure.