In a move to manage costs, Microsoft is reportedly halting hiring in part of its U.S. consulting business. According to a CNBC report citing an internal memo, the tech giant aims to streamline expenses while continuing its heavy investments in artificial intelligence (AI).
Cost-Cutting Measures in Consulting
The memo, shared by consulting executive Derek Danois, outlines plans to pause new hires and back-fill roles within the consulting division. These changes align with broader cost-management policies within Microsoft’s Customer and Partner Solutions organization, which employs approximately 60,000 people.
Employees were also instructed to avoid expensing travel for internal meetings, opting for remote sessions instead. The division plans to cut marketing and non-billable external resource expenditures by 35%, CNBC reported.
Continued AI Investments
Despite the cost-cutting measures in consulting, Microsoft remains committed to its AI initiatives. Earlier this month, the company announced plans to allocate $80 billion in fiscal 2025 to expand data centers for training AI models and deploying AI and cloud-based applications.
The move underscores Microsoft’s strategy of balancing operational efficiency with continued innovation in AI, a cornerstone of its growth plans.
Microsoft’s Broader Strategy
These changes come amid a competitive tech landscape where companies are navigating economic pressures while maintaining focus on emerging technologies. For more details, read the full CNBC report here.
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