Microsoft is pausing hiring of US consultants on the heels of a round of layoffs, the latest effort by the Redmond giant to cut costs.
According to CNBC, Microsoft sent an internal memo announcing that it would pause hiring in its consultancy unit. The decision is an effort to cut costs and impacts both new hires and back-filling roles.
In addition to the hiring pause, Microsoft is asking employees to use remote options instead of traveling for internal meetings, and travel expenses will require executive approval.
The consulting unit has also been instructed to reduce expenses by 35%, specifically in marketing and nonbillable external resource spend.
Microsoft has been focusing much of its efforts and innovation on AI, with some critics saying it’s doing so at the expense of some of its core businesses. It’s unclear if the company’s efforts to cut costs and layoff workers is indicative of that.