After a year of major layoffs, Microsoft is preparing to grow its workforce again -- but this time with a clear focus on artificial intelligence (AI).

Speaking on the BG2 podcast with investor Brad Gerstner, Microsoft CEO Satya Nadella said the company’s employee count will increase in a “smarter and more leveraged” way, driven by AI technology.

“We will grow our headcount,” Nadella said, adding that future hiring will be shaped by how AI boosts productivity across the company.

Microsoft had about 2.28 lakh employees at the end of June 2025, with the number staying almost unchanged after several rounds of job cuts that affected over 15,000 workers.

In contrast, before the AI boom in 2022, the company’s workforce had expanded by 22 per cent.

The hiring slowdown came as Microsoft shifte

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