After Job Cuts, Microsoft Plans To Hire Again With AI-Driven Roles, Hints Satya Nadella | Business News

Satya Nadella, Microsoft CEO

Tech giant Microsoft is all set to reverse its gears from a layoff spree this year by initiating hiring in alignment with an AI-first mindset, as announced by CEO Satya Nadella in a podcast.

Speaking to investor Brad Gerstner on the BG2 podcast, Nadella said that company will expand its workforce by adding headcounts, though in a ‘smarter, more leveraged’ way than they had pre-AI.

Since the inception of ChatGPT in late 2022, there has been a massive boom in generative AI-related technologies, with tech giants competing to grab the largest pie in the hot field by launching their own Gen AI chatbots, including Bing, Gemini, Copilot. The new-age technology aims to enhance productivity and automate monotonous, redundant tasks across sectors.

Microsoft’s workforce stood at about 2.28 lakh at the end of its 2025 fiscal year in June, remaining largely flat despite multiple job cuts that affected over 15,000 employees. In 2022, before the AI boom, the company had expanded hiring by 22%, but that momentum slowed sharply as Microsoft shifted focus toward building AI infrastructure, strengthening partnerships, and developing AI-powered productivity tools.

Microsoft CEO Satya Nadella Salary Jumps 22%

Microsoft CEO Satya Nadella received a sharp 22% increase in his annual salary for the financial year 2025, driven mainly by the strong performance of the company’s shares. According to documents filed by Microsoft, Nadella’s total earnings stood at $96.5 million (approximately Rs 8,415 crore), making it one of his highest pay packages to date.

In comparison, Nadella earned $79.1 million dollars (Rs 6,880 crore) in the previous financial year, up from $48.5 million (Rs 4,220 crore) in fiscal year 2024. This year, nearly 90% of his compensation came from company stock. As per the filing, Rs 7,310 crore ($84 million) was granted in the form of shares, while he received a cash bonus of Rs 826 crore ($9.5 million).

The surge in Nadella’s compensation is directly tied to Microsoft’s soaring stock price. In 2025 so far, Microsoft’s shares have climbed about 23%, outperforming the S&P 500 index which returned around 15% in the same period. Over the past three years, Microsoft’s market value has more than doubled, echoing investor confidence in the company’s aggressive push into artificial intelligence.