Satya Nadella, CEO, Microsoft, has confirmed that the company plans to grow its headcount, even after cutting thousands of jobs earlier this year. Speaking on the BG2 Podcast, Nadella said the company’s workforce will expand alongside revenue, but in a more efficient and AI-driven manner than before.
Nadella emphasised that future hiring will be shaped by artificial intelligence (AI) , noting that the company will grow its employee base with “more leverage” compared to the pre-AI era. Microsoft’s headcount stood at 2,28,000 for the fiscal year ending June 2025. However, in July, the company laid off about 9,000 employees — roughly four per cent of its global workforce — as part of a restructuring move linked to AI integration and operational streamlining.
The Microsoft chief highlighted that AI is reshaping how employees work and make decisions. He compared the shift to earlier workplace revolutions sparked by email and Excel, saying that today’s planning and execution processes “start with AI”. Nadella believes AI is transforming not just tools, but workflows — creating new ways for teams to collaborate, innovate and execute tasks.
He also told employees recently that the AI transition is changing Microsoft’s internal culture. Teams are being encouraged to take broader ownership of projects, reduce handoffs, and use AI tools to scale productivity. The focus, he said, is not only on efficiency but also on empowering employees to “dream bigger” and achieve results faster and with greater impact.
While AI has fuelled concerns about job displacement across industries, Nadella’s comments suggest that Microsoft sees the technology as an enabler rather than a threat. The company’s strategy aligns with research suggesting that AI will augment human capabilities, enhancing productivity rather than replacing workers entirely.
