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