Microsoft Expands Workforce with a Focus on Artificial Intelligence
Microsoft is poised to expand its workforce as artificial intelligence takes centre stage in its growth strategy. Following several months marked by layoffs and organisational changes, CEO Satya Nadella confirmed the company’s intention to hire once more, reshaping its approach to workforce expansion.
Shifting Strategies Towards Efficiency
The upcoming hiring phase at Microsoft will differ significantly from the periods preceding AI advancements. There will be a heightened emphasis on efficiency and technology-led growth. Nadella noted in a recent podcast with investor Brad Gerstner that the newly added workforce will have greater leverage compared to the staff numbers seen before AI initiatives.
Current Workforce Context
At the end of its fiscal year in June, Microsoft reported about 228,000 employees, maintaining a figure similar to the previous year, despite cuts exceeding 15,000 positions. Nadella clarified that these layoffs were part of a strategic pivot towards AI, focusing resources on talent, partnerships, and products such as Microsoft 365 Copilot and GitHub Copilot, leveraging models from OpenAI and Anthropic.
The Role of AI in Daily Operations
Nadella illustrated how AI is already reshaping operations within Microsoft. He mentioned that planning and execution now begin with AI tools. Collaboration and research processes incorporate AI as a core component. He provided an instance of an executive managing Microsoft’s fibre network, who utilised AI agents to automate maintenance responsibilities amid slow recruitment for expanding data centre requirements. This exemplifies how teams employing AI tools can enhance productivity, according to Nadella.
Historical Context of Workplace Transformation
Drawing comparisons to historical shifts in workplace practices, Nadella likened the ongoing AI integration to the transition from fax communications to email and spreadsheet tools that redefined internal messaging decades ago. He emphasised that the current transformation is occurring at an accelerated pace. The intention is for every employee to effectively integrate AI systems into their workflows, enhancing overall output.
Continued Commitment to AI Development
As Microsoft advances its AI initiatives, it continues to see substantial engagement, with around 230,000 organisations using Copilot Studio and over 14,000 customers connected to Azure AI Foundry. Financially, Microsoft remains robust, reporting $281.7 billion in revenue and $101.8 billion in profit for the fiscal year concluding on June 30, 2025. The Azure cloud segment experienced a 34% year-on-year growth, surpassing $75 billion in revenue. Microsoft is now active in 70 regions, operating more than 400 data centres globally.
Contrasting Approaches with Competitors
While Microsoft prepares to expand, competitors like Amazon are taking alternative routes, with Amazon recently laying off 14,000 corporate employees. Beth Galetti, Amazon’s HR head, referred to AI as “the most transformative technology since the Internet,” highlighting the reorganisation trends in major tech companies.
The Future of Microsoft Workforce
Nadella’s statements suggest Microsoft is entering a new era characterised by AI-driven efficiency rather than large-scale hiring. He stated that the next year would focus on a process of unlearning and learning, setting the groundwork for future workforce growth, aimed at maximum leverage.
According to Nadella, the next generation of Microsoft employees will not only utilise AI but will also engage in building, training, and thinking alongside AI technologies.
