Microsoft has announced a halt in hiring within its US consulting unit as part of a broader cost-cutting initiative, according to a report by CNBC.
This decision comes amidst the company’s ongoing efforts to manage expenses while continuing to invest heavily in artificial intelligence (AI) and cloud-based applications.
Microsoft US Consulting Division: Cost-Cutting Measures
Earlier this month, Microsoft revealed plans to invest approximately $80 billion in fiscal 2025 on developing data centers to train AI models and deploy AI and cloud-based applications.
The consulting division, which is part of the Microsoft Customer and Partner Solutions organization, employs around 60,000 people.
Consulting executive Derek Danois informed employees in an internal memo that the division will hold off on hiring new employees and back-filling roles to reduce costs.
The memo emphasized the importance of careful cost management and instructed employees to avoid expensing travel for internal meetings, opting for remote sessions instead.
Additionally, the division will cut its marketing and non-billable external resource spend by 35%.
Impact on Employees
The hiring freeze specifically impacts the US Accenture Cloud and Industry Solutions (ACIS) unit, which plays a crucial role in assisting businesses in leveraging Microsoft’s cloud computing platform, Azure.
While Microsoft has not publicly commented on the hiring freeze, it aligns with a broader trend of cost-cutting measures seen across the tech industry.
Several major tech companies have implemented hiring freezes or even initiated layoffs in recent months as they strive to navigate economic headwinds and prioritize profitability.
Despite the hiring freeze, Microsoft continues to focus on AI and cloud initiatives, maintaining its long-term growth strategies.
The company’s decision to halt hiring in its consulting division is part of a broader strategy to manage overall expenses while continuing to invest in its AI efforts.
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