Microsoft suspends hiring in cloud, sales divisions

In Short:
– Microsoft has enacted a hiring freeze in key divisions while maintaining hiring for Copilot AI teams.
– The company is cutting costs amid slower cloud growth and significant AI investments.

Microsoft has reportedly implemented a hiring freeze in specific major divisions, such as its cloud unit and North American sales groups.Executives have instructed managers to cease hiring new candidates who do not currently have job offers, aiming to reduce costs and improve profit margins.

Microsoft hiring freeze

Reports indicate the freeze is not applicable to all divisions, with teams working on Microsoft’s Copilot AI tool still actively hiring.

Microsoft has not responded to requests for comments regarding this decision.

As the end of its fiscal year approaches in June, Microsoft, like other major tech companies, is attempting to manage costs amid significant investments in AI infrastructure.

Earlier reports indicated that Meta is also planning substantial layoffs that may impact more than 20% of its workforce.

A source revealed that Meta has begun laying off several hundred employees across various teams.

In addition, Amazon has reduced its workforce by approximately 30,000 corporate positions over the last six months, beginning with around 14,000 job cuts in October.

These layoffs are linked to efficiency improvements from AI implementations and adjustments following pandemic-related over-hiring.

Microsoft employed about 228,000 staff globally as of June 2025 and faces increasing pressure to deliver returns from its AI investments.

The company experienced slower cloud computing growth in the last quarter, alongside record capital expenditures on AI, raising concerns among investors.

Recent layoffs in July impacted approximately 4% of Microsoft’s workforce.