March 26, (GeokHub) – Microsoft executives have instructed managers in key divisions, including the company’s cloud unit and North American sales teams, to pause new hiring, according to a report by The Information citing employees with direct knowledge of the decision.
Managers were told to suspend hiring candidates who did not already have a confirmed offer, reflecting the company’s focus on cost control and margin improvement. The hiring freeze is not company-wide, with divisions such as the team developing Microsoft’s Copilot AI tool continuing to recruit staff.
The move comes as Microsoft approaches the end of its fiscal year in June, amid pressure to balance substantial AI investments with returns. The company, which employed approximately 228,000 people globally as of June 2025, reported slower cloud computing growth in its October-December quarter alongside record capital spending on AI initiatives, raising investor concerns.
This latest hiring freeze follows prior workforce reductions, including a 4% cut announced in July 2025. Industry peers have also implemented cost-saving measures, with Meta reportedly planning layoffs affecting 20% or more of its workforce and Amazon reducing about 30,000 corporate positions over the past six months.
