Satya Nadella signals hiring comeback at Microsoft, but with ‘AI leverage’
Satya Nadella signals a hiring comeback at Microsoft after a turbulent year of layoffs, . However, this revival comes with a very clear condition: every new role must deliver AI-driven leverage. Speaking on the BG2 podcast with investor Brad Gerstner, the Microsoft CEO confirmed that headcount will rise again — but not in the traditional, pre-AI way.
“We will grow our headcount,” Nadella said. “But that headcount will grow with a lot more leverage than what we had pre-AI.”
This shift marks a new chapter for Microsoft. Instead of expanding simply to scale operations, the company plans to hire selectively and strategically, ensuring each employee can multiply output through AI. The policy arrives after Microsoft cut more than 15,000 roles in the last cycle and held its workforce steady at around 228,000 employees by June 2025, following a hiring boom in 2022.
A targeted hiring era powered by AI leverage
Nadella emphasized that Microsoft is entering a precision-growth phase. Rather than returning to the aggressive hiring patterns of the past, the company will recruit talent capable of harnessing AI to amplify productivity. Moreover, this strategy builds on Microsoft’s enormous investment in artificial intelligence infrastructure and partnerships with OpenAI and Anthropic.
Before the AI wave, Microsoft expanded its workforce by 22% in 2022. But the company pivoted sharply as the AI race accelerated, moving from headcount expansion to capability expansion. Now, Nadella’s remarks make one point unmistakably clear: growth is returning — but through talent that uses AI as a force multiplier, not merely as a tool.
Inside Microsoft’s ‘unlearning and learning’ moment
According to Nadella, Microsoft employees are already rebuilding workflows from the ground up. “Any planning, any execution, starts with AI,” he said. Employees research, think, and collaborate with AI tools like Microsoft 365 Copilotand GitHub Copilot, embedding automation and intelligence at every step.
While Microsoft embraces AI-augmented hiring, rivals face different realities. Amazon recently cut 14,000 corporate jobs, even as its leadership called AI the most transformative technology since the internet. The contrast reflects how big tech players are repositioning for an AI-dominated economy — some through consolidation, others through targeted expansion.
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Prerna Varshney is a journalist and social commentator with over five years of experience in health, gender, and policy reporting. Her work reflects a deep commitment to truth and empathy, simplifying complex issues for everyday readers.
