Microsoft Tightens Belt on Hiring to Fuel AI Ambitions
As the tech giant gears up to invest heavily in artificial intelligence, Microsoft is taking drastic measures to manage its expenses. According to an internal memo, the company’s consulting business in the U.S. will put a freeze on new hires and refrain from back-filling roles to reduce costs.
A Shift in Priorities
This move is part of Microsoft’s strategy to allocate resources more efficiently, with a focus on developing data centers to train AI models and deploy AI and cloud-based applications. The company has committed to investing around $80 billion in fiscal 2025 towards this effort.
Cost-Cutting Measures
To achieve its goal, the consulting division will adopt a more frugal approach. Employees have been instructed to avoid expensing travel for internal meetings, instead opting for remote sessions. This change is expected to have a significant impact on the company’s bottom line.
Aligning with Broader Policy
The U.S. consulting division’s new approach is in line with the Microsoft Customer and Partner Solutions organization’s policy, which oversees around 60,000 employees. As part of this effort, the unit will also slash its marketing and non-billable external resource spend by 35%.
A Prudent Move
Microsoft’s decision to rein in costs is a prudent one, given the significant investment required to drive its AI ambitions forward. By streamlining its operations and reducing expenses, the company can ensure it has the necessary resources to fuel its growth and innovation in the AI space.
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