Microsoft CEO Satya Nadella Reveals AI-First Hiring Strategy After Layoffs

After a year marked by widespread layoffs, Microsoft is preparing to resume hiring — with a sharp focus on AI-powered growth.

CEO Satya Nadella revealed that the company’s next phase of expansion will prioritize roles transformed or enhanced by artificial intelligence, not just traditional headcount increases.

Speaking on the BG2 podcast with investor Brad Gerstner, Nadella explained,

“We will grow our headcount. But the way I look at it is, that headcount will grow with a lot more leverage than what we had pre-AI.”

AI to Reshape Microsoft’s Workforce

Nadella described this new era as a “post-layoff transformation” phase where AI will completely reshape how teams operate and collaborate.

Microsoft currently employs around 2,28,000 people after cutting more than 15,000 jobs in the past year. The company had paused hiring following its pandemic-era expansion, when the workforce surged by 22% in 2022 alone.

Now, the focus shifts toward targeted hiring, where AI integration drives efficiency, productivity, and innovation across departments.

How AI Is Changing Microsoft’s Work Culture

The Microsoft chief emphasized that the company’s operations now start and end with AI:

“Right now, any planning, any execution, starts with AI. You research with AI, you think with AI, you share with your colleagues — everything begins there.”

He shared a practical example from Microsoft’s fiber-networking division, where an executive used AI agents to automate maintenance amid rising cloud infrastructure demands. This shift allowed smaller teams to achieve more — a preview of the company’s AI-driven efficiency model.

Contrast With Amazon and Other Tech Giants

While Amazon recently announced 14,000 job cuts as part of its cultural reset, Microsoft is positioning itself for a comeback — one that’s fueled by AI roles and automation rather than mass hiring.

The shift reflects a larger industry transformation, where AI is not just a tool, but a foundation for organizational growth and talent planning.

“AI Is the New Baseline for Productivity”

Drawing a parallel with past technological revolutions, Nadella compared today’s AI transformation to the fax-to-email shift that redefined offices decades ago.

“We’re at that same kind of inflection point — only faster,” he said.

Nadella’s vision positions Microsoft as a leader in AI-first workforce evolution, where human expertise and machine intelligence blend to drive the next chapter of enterprise innovation.