Microsoft Halts Hiring in Cloud, Sales Amid Cost-Cutting Measures
- tech360.tv
- 2 hours ago
- 2 min read
Microsoft executives have instructed managers in key divisions, including its cloud unit and North American sales groups, to suspend new hiring. The Information reported this decision on Thursday, citing three employees with direct knowledge.
Managers were told to halt hiring for any new candidates who did not already possess a job offer. The reported reasons for this pause include the need to cut costs and boost margins.
The hiring freeze is not company-wide, with other divisions, such as the group developing Microsoft’s Copilot AI tool, continuing to hire. This hiring freeze occurs as Microsoft approaches the conclusion of its fiscal year in June.
The organisation, similar to other major technology companies, seeks to control costs to offset hefty investments in artificial intelligence infrastructure. Meta was planning significant layoffs that could impact 20% or more of the organisation, according to a report.
A source indicated the Facebook parent was laying off hundreds of people across various teams. Amazon has reduced its corporate workforce by approximately 30,000 employees over the past six months.
This began with about 14,000 white-collar employees in October, linking the reductions to artificial intelligence efficiency gains and reversing pandemic-era over-hiring. Microsoft employed approximately 228,000 people globally as of June 2025.
The company faces increasing pressure to demonstrate returns from its artificial intelligence investments. In the October-December quarter, the organisation reported slower growth in cloud computing.
It also announced record capital spending on artificial intelligence, which concerned investors. The Windows maker previously announced widespread layoffs in July, reducing its workforce by about 4%.
Microsoft has frozen hiring in its cloud unit and North American sales groups.
This decision aims to cut costs and boost margins, though it is not a company-wide freeze.
Other tech companies, including Meta and Amazon, have also reduced their workforces.
Source: REUTERS
