Microsoft plans to hire more but with 'a lot more leverage' thanks to AI, CEO Satya Nadella says

In a recent podcast, Microsoft CEO Satya Nadella revealed plans for the company to expand its workforce, emphasizing a shift towards leveraging artificial intelligence (AI) for greater efficiency. The software giant's employee count remained stable at 228,000 during the 2025 fiscal year, which concluded in June, following significant layoffs that reduced the workforce by over 6,000 positions, including an additional 9,000 in July. Nadella expressed optimism about future hiring, stating, "We will grow our headcount, but this growth will come with much more leverage compared to our pre-AI workforce." The introduction of OpenAI's ChatGPT assistant in 2022 has played a crucial role in this transformation. In the 2022 fiscal year, Microsoft had previously seen a 22% increase in its workforce. As part of this transition, employees will need to adapt to new ways of working, with access to AI capabilities integrated into Microsoft 365 and the GitHub Copilot AI coding assistant. Nadella noted that these services utilize AI models from partners like Anthropic and OpenAI. He remarked on the necessity of a learning and unlearning process, predicting that this adjustment will take about a year before the company can fully realize the potential of its enhanced workforce. Drawing parallels to past technological shifts, Nadella recalled how businesses transitioned from using fax machines and inter-office memos to email and spreadsheets. He observed, "Now, any planning and execution begins with AI. It’s how we research, think, and collaborate with colleagues." In the backdrop of Microsoft’s strategy, Amazon has also made headlines by cutting 14,000 corporate jobs as it competes with Microsoft in the cloud infrastructure market. Amazon’s senior VP, Beth Galetti, highlighted the transformative nature of AI, likening its impact to that of the Internet, allowing companies to innovate at unprecedented speeds. Nadella shared an example of a Microsoft executive in charge of networking fiber who, facing the challenge of hiring enough staff, successfully implemented AI agents for maintenance tasks. "This illustrates how teams equipped with AI tools can significantly boost productivity," he explained. On the financial front, Microsoft recently announced a robust 12% growth in revenue year-over-year, alongside achieving its highest operating margin since 2002.