Microsoft to Expand Workforce Despite Earlier Layoffs, Says CEO Satya Nadella

Satya Nadella, Chief Executive Officer of Microsoft, has confirmed that the company plans to expand its workforce, even after implementing significant job cuts earlier this year. Speaking on the BG2 Podcast, Nadella said Microsoft’s headcount will continue to grow in line with revenue, but in a more efficient, AI-driven manner.
Nadella explained that future hiring will be shaped by artificial intelligence (AI), allowing the company to scale its operations with “more leverage” than before. As of the fiscal year ending June 2025, Microsoft’s global workforce stood at approximately 2,28,000 employees. However, in July 2025, the company laid off about 9,000 employees—roughly four per cent of its global staff—as part of a broader restructuring linked to AI integration and operational optimisation.
The Microsoft chief noted that AI is transforming how employees work, plan, and make decisions, comparing the shift to earlier workplace revolutions brought about by tools such as email and Excel. “Today’s planning and execution processes start with AI,” Nadella said, adding that the technology is reshaping workflows and enabling new ways for teams to collaborate and innovate.
He also highlighted that Microsoft’s internal culture is evolving with this transformation. Teams are being encouraged to take greater ownership of projects, minimise handoffs, and use AI-powered tools to enhance productivity. The goal, Nadella said, is not only to improve efficiency but also to empower employees to “dream bigger” and deliver stronger outcomes faster.
While AI adoption has raised concerns about potential job losses across industries, Nadella emphasised that Microsoft views AI as an enabler rather than a threat. The company’s approach aligns with studies suggesting that AI will augment human capabilities, boosting productivity rather than replacing workers.
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