Microsoft’s consulting division pauses hiring, aims to cut costs, CNBC reports

Investing.com — Microsoft (NASDAQ:)’s U.S. consulting division plans to halt hiring, CNBC reported on Tuesday, citing an internal memo, as the tech giant seeks to control expenses.

This move follows last week’s announcement of layoffs affecting less than 1% of the company’s workforce.

The changes in the consulting division align with the policies of the Microsoft Customer and Partner Solutions organization, the report said, adding that the organization, boasting around 60,000 employees, has implemented these changes for the rest of the fiscal year 2025, which ends in June.

The memo also directs employees to avoid expensing travel for internal meetings, encouraging the use of remote sessions instead. Moreover, trips to customer sites now require executive authorization to ensure spending is targeted at the right customers, the report said.

The company’s cost-cutting measures also extend to its marketing and non-billable external resource spending. According to the report, the group plans to reduce this expenditure by 35%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.