Microsoft has announced a hiring pause in its US consulting business as part of its ongoing cost-cutting strategy, reported CNBC.
This decision follows recent layoffs affecting less than 1% of its workforce.
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The hiring freeze aligns with Microsoft Customer and Partner Solutions’ policy, which employs around 60,000 people, and will remain in place through the 2025 fiscal year ending in June.
In a memo to employees, consulting executive Derek Danois said the division will refrain from hiring new employees and back-filling roles. He emphasised the importance of careful cost management.
Employees are advised to avoid expensing travel for internal meetings, opting for remote sessions instead.
Executives must authorise customer site visits to ensure spending is directed towards the right clients.
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By GlobalDataIn addition, the consulting unit plans to reduce its marketing and nonbillable external resource spending by 35%.
A Microsoft representative has not yet commented on these developments.
Despite the slower growth of the consulting division compared with Microsoft’s productivity software and Azure cloud computing businesses, the unit generated $1.9bn in the September quarter, a slight decline of 1% from the previous year.
Under CEO Satya Nadella, Microsoft has been adjusting to market shifts, including laying off 10,000 employees in early 2023 and consolidating leases.
In January 2024, three months post the $75.4bn Activision Blizzard acquisition, Microsoft’s gaming unit reduced its workforce by 1,900 to minimise overlap.
Earlier in January 2025, Microsoft announced plans to invest nearly $80bn by fiscal year 2025 to expand its artificial intelligence (AI) data centres. More than half of this investment will be allocated to the US.
These centres will facilitate the training of AI models and the worldwide implementation of AI and cloud-based applications.
Earlier in January 2025, the tech giant revealed plans to invest $3bn in India over the next two years to strengthen cloud and AI infrastructure.
