AI-powered Press Release

Microsoft to Ramp Up Hiring as AI Adoption Accelerates, CEO Satya Nadella Says

• ByStartupStory     |    November 2, 2025

Microsoft to Ramp Up Hiring as AI Adoption Accelerates, CEO Satya Nadella Says

After a challenging period marked by layoffs and workforce reductions, Microsoft is preparing to expand its employee base again, with artificial intelligence (AI) at the core of its future hiring strategy. CEO Satya Nadella shared insights during a podcast with investor Brad Gerstner that the company’s next phase of growth will be “smarter and more leveraged” thanks to AI-driven productivity gains.

Microsoft’s headcount stood at approximately 228,000 employees at the end of its 2025 fiscal year in June, nearly unchanged despite multiple rounds of job cuts totaling over 15,000 roles. Nadella emphasized that this upcoming growth won’t resemble the pre-AI era’s rapid mass hiring; instead, Microsoft plans targeted scaling where smaller teams empowered by AI tools accomplish more.

Nadella described this shift as an “unlearning and learning process,” where employees adapt to using AI in daily workflows—from research and planning to execution and collaboration—making work faster and more innovative. Future hires will focus on roles that maximize the impact of AI technologies rather than duplicating tasks that AI can automate.

Highlighting AI’s transformative influence, Nadella shared an example of a Microsoft executive using AI agents to maintain fiber network infrastructure, reducing the need for new hires while managing increased demand. This exemplifies Microsoft’s philosophy of “hire for impact, not numbers.”

The company is actively embedding AI capabilities into its products, such as Microsoft 365 Copilot and GitHub Copilot, powered by AI models from partners OpenAI and Anthropic. This integration aims to boost productivity across the organization and product offerings.

While the company plans to grow headcount, this will come with a focus on leveraging AI to ensure every new role adds multiplicative value. Nadella analogized this evolution to past workplace technology shifts like the adoption of email and spreadsheets, emphasizing AI as the foundation for planning and execution in modern businesses.

In summary, Microsoft’s renewed hiring plans mark a strategic pivot into an AI-driven operating model, where workforce expansion is balanced by amplified productivity and intelligent automation. CEO Satya Nadella’s vision underscores AI as the centerpiece of Microsoft’s growth, innovation, and future workforce structure.

Follow Startup Story