Jan 14 (Reuters) - Microsoft ( MSFT ) is planning to
halt hiring in part of its consulting business in the U.S. in a
bid to cut costs, CNBC reported on Tuesday, citing an internal
memo.
The tech giant is looking to manage overall expenses as it
looks to continue investments in its artificial intelligence
(AI) efforts.
Earlier this month, Microsoft ( MSFT ) said it planned to invest
about $80 billion in fiscal 2025 on developing data centers to
train AI models and deploy AI and cloud-based applications.
The consulting division will hold off on hiring new
employees and back-filling roles to reduce costs, consulting
executive Derek Danois told employees, as per the memo, CNBC
reported.
Microsoft ( MSFT ) did not immediately respond to a Reuters
request for comment.
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.
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, CNBC
reported.
The unit will also cut its marketing and non-billable
external resource spend by 35%, the report said.