Janice R. Andrews
Microsoft has implemented a hiring freeze in its U.S. consulting division as part of a cost-saving initiative, CNBC reported, citing an internal memo. The decision is aimed at managing expenses while the company continues to invest significantly in artificial intelligence (AI).
Earlier, Microsoft announced plans to spend around $80 billion in fiscal 2025 to expand data centers for AI model training and AI-powered cloud applications.
Derek Danois, a consulting executive, informed employees about the hiring freeze, which includes pausing new hires and replacing vacated roles. Employees were also advised to avoid expensing travel for internal meetings, favoring remote sessions to reduce costs.
The consulting division will further cut its marketing and non-billable external resource expenses by 35%, aligning with cost-management policies set by Microsoft’s Customer and Partner Solutions group, which employs approximately 60,000 people.
These adjustments reflect Microsoft’s strategic focus on maintaining financial discipline while channeling resources toward AI innovation. Although the company has not issued a public statement, the move is part of a broader industry trend of cost optimization amid economic challenges.
Microsoft’s actions underscore the tech giant’s commitment to balancing expense control with long-term growth priorities, particularly in AI development.
