Microsoft, after recent layoffs, is set to increase its workforce with a focus on artificial intelligence (AI) guiding its growth strategy. In a conversation with investor Brad Gerstner on the BG2 podcast, Microsoft CEO Satya Nadella confirmed the company’s plans for expansion, emphasizing a smarter and more strategic approach powered by automation.
Nadella stated that the upcoming hiring phase will prioritize roles that enhance the impact of AI, rather than duplicating tasks already performed by machines. Microsoft’s workforce has remained relatively stable over the past year, with around 228,000 employees as of the end of the 2025 fiscal year in June. This figure reflects several rounds of job cuts, including 6,000 layoffs and an additional 9,000 roles eliminated in July. In comparison, during the 2022 fiscal year, Microsoft experienced a significant 22% growth in its employee base at the onset of the AI era.
With products like OpenAI’s ChatGPT and Microsoft’s AI-integrated tools reshaping work processes, Nadella believes the company is prepared for a new phase of growth. Employees will be required to adapt to AI integration by “unlearning and learning” to maximize leverage in their roles. Tools such as Microsoft 365’s Copilot assistant and GitHub’s AI coding helper, utilizing models from OpenAI and Anthropic, aim to enhance productivity and collaboration.
Nadella likened this transition to past technological shifts in the workplace, highlighting the pivotal role of AI in all aspects of planning, creation, and collaboration. Amidst a wave of tech layoffs, including Amazon’s recent announcement of 14,000 corporate job cuts driven by AI-driven restructuring, Microsoft’s expansion strategy stands out for its emphasis on automation. Nadella shared an example of an executive leveraging AI agents to manage increased cloud demand efficiently, showcasing the company’s commitment to impactful hiring practices over sheer numbers.
In conclusion, Microsoft’s growth trajectory will revolve around building teams that leverage AI at the core of their operations, focusing on problem-solving and innovation for sustained impact.