Microsoft is taking steps to tighten its budget by temporarily halting hiring in its U.S. consulting division, as shared in an internal memo. The decision, first reported by CNBC, is part of the company’s broader strategy to manage expenses while prioritizing significant investments in artificial intelligence (AI).
Derek Danois, a leader in Microsoft’s consulting arm, explained that the hiring freeze includes backfilling existing roles. The team has also been asked to cut back on travel for internal meetings, opting for remote sessions, and to reduce marketing and non-essential spending by 35%.
These adjustments come as Microsoft continues to pour resources into building data centers to support its ambitious AI projects, with plans to invest $80 billion in fiscal 2025. While these changes aim to keep costs in check, Microsoft remains focused on driving innovation and supporting its global teams.
The company hasn’t yet commented on the reports, but these measures align with its efforts to balance operational efficiency and future-focused investments.
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