Microsoft Halts Hiring in US Consulting Unit as Cost-Cutting Measure, CNBC Reports
In a move to reduce costs, Microsoft is set to pause hiring in a section of its consulting business in the United States, as reported by CNBC referencing an internal memo. The tech giant aims to manage expenses while continuing to invest in its artificial intelligence (AI) initiatives.
Microsoft recently announced plans to invest approximately $80 billion by fiscal 2025 to enhance data centers for AI model training and the deployment of AI and cloud-based applications. The consulting division will refrain from hiring new staff and filling vacant positions to lower expenses, according to consulting executive Derek Danois as cited in the memo by CNBC.
Danois highlighted the significance of cost management in the memo, instructing employees not to expense travel for internal meetings but to opt for remote sessions instead. The adjustments within the U.S. consulting division align with the policy of the Microsoft Customer and Partner Solutions organisation, which boasts around 60,000 employees, as per CNBC.
Additionally, the unit plans to reduce its marketing and non-billable external resource expenditure by 35%, as reported.
Microsoft to halt hiring in US consulting unit to cut costs
Company aims to manage expenses while investing in AI efforts
Consulting division instructed to reduce costs by pausing hiring and cutting expenses
Source: REUTERS
