Microsoft’s New Hiring Strategy: More Jobs, But Every Employee Must Be Supercharged by AI
In a bold vision for the future of work, Microsoft CEO Satya Nadella has announced the tech giant plans to start growing its workforce again. But there’s a major twist: every new hire will be expected to achieve far more than ever before, supercharged by artificial intelligence.
This new strategy, which Nadella calls hiring with “a lot more leverage,” signals a fundamental shift in how one of the world’s most valuable companies views its employees. It comes after a period of significant layoffs and flat hiring, suggesting that AI is not just a product Microsoft sells, but a force that is radically reshaping its own operations.
A Pause Before the AI Leap
For the past fiscal year, which ended in June, Microsoft’s employee count stayed frozen at around 228,000 people. This number was the result of several rounds of layoffs that cut at least 6,000 jobs, followed by another 9,000 cuts in July. The company was clearly in a holding pattern.
This stagnation stands in stark contrast to just a few years ago. In the 2022 fiscal year, the year before the AI boom began with ChatGPT, Microsoft’s workforce grew by a rapid 22%. Now, Nadella is ready to press play on hiring again, but the rules of the game have completely changed.
“The way I see it, the new hires we make will bring much greater efficiency and impact compared to our workforce before the AI era,” Nadella said on the BG2 podcast with investor Brad Gerstner.
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The “Unlearning” Period
So, what does “more leverage” actually mean? According to Nadella, we are currently in a critical transition phase. He believes it will take about a year for existing employees to “unlearn” old ways of working and fully “learn” how to integrate AI into their daily tasks.
Microsoft is pushing its own AI tools to make this happen. Employees across the company are being encouraged to use AI features built into Microsoft 365 apps like Word and Excel, as well as the GitHub Copilot assistant, which suggests lines of code to developers. These tools are powered by advanced AI models from partners like OpenAI and Anthropic.
Nadella compares this shift to the revolution that happened decades ago when offices moved from using fax machines and memos to using email and spreadsheets. The companies that adapted thrived.
“Right now, any planning, any execution, starts with AI,” Nadella explained. “You research with AI, you think with AI, you share with your colleagues and what have you.”
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A Real-World Example of AI Power
Nadella didn’t just speak in generalities. He shared a concrete story from inside Microsoft that illustrates his point. He described an executive in charge of the company’s complex network of internet fiber cables.
As demand for Microsoft’s cloud services exploded, this executive realized she would not be able to hire all the human engineers she thought she needed to manage the growth. Instead of fighting for more hires, her team built special AI agents. These AI agents now handle a significant portion of the maintenance work for the global network.
This single team, empowered by AI, was able to achieve what would have previously required a much larger workforce. “That is an example of a team with AI tools being able to get more productivity,” Nadella told the podcast host.
A Industry-Wide Trend
Microsoft is not alone in betting that AI will redefine productivity. This week, its top cloud rival, Amazon, announced 14,000 layoffs in its corporate ranks. In a memo to employees, an Amazon executive called AI “the most transformative technology we’ve seen since the Internet,” implying it enables companies to innovate faster with different resources.
The early returns on Microsoft’s AI-focused strategy are already appearing in its financial results. The company recently reported a powerful 12% growth in revenue and, importantly, its widest profit margin since 2002. This suggests that even during heavy investment in AI, the company is finding ways to operate more efficiently.
For anyone at Microsoft, or anyone hoping to work there, the message from the top is clear: the era of doing more with AI has begun, and the company’s future growth depends on it.
Author: Yasir Khan
Date: 02 Nov, 2025
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