Microsoft CEO Satya Nadella announced the company intends to increase its workforce, reversing a period of layoffs and flat headcount. The move signals strong confidence in how artificial intelligence will reshape productivity, with Nadella stating that future hiring will come with significantly more leverage than before the AI boom. This strategic shift follows a year where the employee count remained steady after multiple rounds of job cuts. The plan is to resume headcount growth after employees fully integrate new AI tools, like Microsoft 365 and GitHub Copilot, into their workflows—a process expected to take about a year. Nadella emphasized an initial period of "unlearning and learning" as the company adapts to new AI-powered operational methods before expanding its staff with greater efficiency. There was no immediate, significant market reaction analysis available in the initial reports.