Microsoft halts hiring in US consulting unit as cost-cutting measure, CNBC reports

[Hitman]

Reuters

Tue, January 14, 2025 at 3:47 PM EST 1 min read

(Reuters) - Microsoft 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 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 did not immediately respond to a Reuters request for comment.

 

[HugoStrange]

Something big is happening in Microsoft or they know something that we don’t. They are reducing their expenses as if a recession is comming

[Hitman]

6 minutes ago, HugoStrange said:

Something big is happening in Microsoft or they know something that we don’t. They are reducing their expenses as if a recession is comming

 

[Moon_Walker]

Em starting ra naayna new year ki

[Sucker]

DOGE team Fed jobs cuts ikkada Big tech cuts. MAGA will be happy 

[Tellugodu]

16 minutes ago, Sucker said:

DOGE team Fed jobs cuts ikkada Big tech cuts. MAGA will be happy 

How are you preparing for RTO ra, Everything is set ?

[Sucker]

14 minutes ago, Tellugodu said:

How are you preparing for RTO ra, Everything is set ?

Lol yevadu pothadu 

[Moon_Walker]

Microsoft lays off employees in security, experiences and devices, sales, and gaming — separate from performance cuts.

The layoffs are separate from cuts targeting underperforming employees across the company.

https://www.businessinsider.com/microsoft-layoffs-hit-security-devices-sales-gaming-2025-1

 

[Galactus]

Every company is hiring only in India, this will accelerate in 2025 due to the eh okati issue

[krishnaaa]

6 hours ago, HugoStrange said:

Something big is happening in Microsoft or they know something that we don’t. They are reducing their expenses as if a recession is comming

Its very easy to understand if you understand how to evaluate stocks.

All large cap tech stocks are priced to perfection. They have to show earnings growth to justify valuation.

One way to do that in higher interest rate environment is by cutting expenses. This is the Best answer you can get.

[HugoStrange]

7 hours ago, krishnaaa said:

Its very easy to understand if you understand how to evaluate stocks.

All large cap tech stocks are priced to perfection. They have to show earnings growth to justify valuation.

One way to do that in higher interest rate environment is by cutting expenses. This is the Best answer you can get.

emo kaka, nenu work chesedi aa company ke. maa vallu chala projects cancel chesaru and delay chesaru. so emi avuthundo chudali. 

[krishnaaa]

13 hours ago, HugoStrange said:

emo kaka, nenu work chesedi aa company ke. maa vallu chala projects cancel chesaru and delay chesaru. so emi avuthundo chudali. 

Already explained the reason. Trust me .... I spend 5-6 hours every day on this.

[futureofandhra]

Just now, krishnaaa said:

Already explained the reason. Trust me .... I spend 5-6 hours every day on this.

When do you think things to recover 

[krishnaaa]

15 minutes ago, futureofandhra said:

When do you think things to recover 

We need more interest rate cuts and reduced regulatory environment.

Luckily the second part should be fine after Trump. This has been evident from increased business sentiment and deal making which has lead to improved earnings for financial institutions that reported today. Hope there will a reduction in government spending as well. 

For rate cuts we need lower inflation which should happen with all the layoffs happening. Only uncertainty here is the impact of tariffs.

Fed has indicated 2 rate cuts this year and now they are saying just 1.  There would be atleast 2 imo, maybe even more.

Issue is that just like rate hikes took time, cuts would also take time to have its impact.

In the meanwhile, mortgage rates should go down mid 2025 which would lead to more savings and in turn more consumer spending.

2025 is the year we do whatever we get. 2026 should swing back to medium.

[Joker_007]

On 1/15/2025 at 4:37 AM, HugoStrange said:

Something big is happening in Microsoft or they know something that we don’t. They are reducing their expenses as if a recession is comming

Recession aa bokka.. paisla levu.. correct ga cheppu in last 5years which product is good from Microsoft Win10,11 lvdala undi.. Office 365 is having integration with most of the products which rely on Java Platform.. Azure enterprise na Lvdala undi.. Integration issue.. ticket raise chest vaaram padtondi... Enter Prise Architects are carefully reviewing Azure solution as they made it complex rather than simple. Cost also got increased .. so Architects are shifting to Open Source or better Low Code No Code Solution which offer better cost than Microsoft. When Production issue arises these sales dick heads join the call and will simple say hire a person from Microsoft rather than trying to provide work arround. Almost Anni products inte daridram ga Yedchayi...