Microsoft Pauses Hiring In US Consulting Unit (cnbc.com) 9
A week after announcing performance-based job cuts similar to those at Meta, Microsoft said it also plans to pause hiring in part of its consulting unit. CNBC reports: The changes by the U.S. consulting division are meant to align with a policy by the Microsoft Customer and Partner Solutions organization, which has about 60,000 employees, according to a page on Microsoft's website. The changes are in place through the remainder of the 2025 fiscal year ending in June. To reduce costs, Microsoft's consulting division will hold off on hiring new employees and back-filling roles, consulting executive Derek Danois told employees in the memo. Careful management of costs is of utmost importance, Danois wrote.
The memo also instructs employees to not expense travel for any internal meetings and use remote sessions instead. Additionally, executives will have to authorize trips to customers' sites to ensure spending is being used on the right customers, Danois wrote. Additionally, the group will cut its marketing and non-billable external resource spend by 35%, the memo says. Further reading: Companies Deploy AI To Curb Hiring as 'Cost Avoidance' Gains Ground
The memo also instructs employees to not expense travel for any internal meetings and use remote sessions instead. Additionally, executives will have to authorize trips to customers' sites to ensure spending is being used on the right customers, Danois wrote. Additionally, the group will cut its marketing and non-billable external resource spend by 35%, the memo says. Further reading: Companies Deploy AI To Curb Hiring as 'Cost Avoidance' Gains Ground
Just how bad is it going to get? (Score:5, Interesting)
When the juggernauts are looking at serious belt-tightening, they must be predicting bad times.
Not a great leading indicator.
dude (Score:1)
Re: (Score:1, Flamebait)
Your right about one thing, no one wants or cares what you have to say.
Re: (Score:3)
When the juggernauts are looking at serious belt-tightening, they must be predicting bad times.
Not a great leading indicator.
Another way of looking at this is that the tech companies are SERIOUSLY thinking that AI is going to take over major portions of their current employee based work. I don't know if it's going to work long-term, but they'd be terrible at selling AI if they can't say, "Look at how much of our workforce AI has allowed us to cull!"
No (Score:1)
This is 100% so the CVP in charge of that unit will make his or her bonus in the current quarter/year. It is not at all a forward-looking move. That is how Microsoft operates. They are not like a united machine like Apple where everything is directed from the top. They are basically a bunch of princelings who barely cooperate and do whatever they can from quarter to quarter to make their bonuses. Remember how Edge got "buy now pay later" integration? That was an attempt to budge the needle so Mikhail Parakh
President Musk is opening the H1B spigot! (Score:3, Funny)
Time to lay off high salary workers.