Microsoft Freezes Hiring in Cloud and Sales Groups Amid Stock Suffers Worst Start to Year

Microsoft executives have instructed managers to freeze hiring in major cloud and North American sales groups to reduce costs and boost margins. This decision is part of a broader effort as the company's stock price suffers its worst start to a year on record. Hiring is expected to resume in other divisions, including Copilot and AI-related engineering.

Microsoft's latest move is part of a broader trend in the tech industry, where companies are freezing hiring due to economic uncertainty. This decision is a response to Microsoft's stock price, which is down about 24% on the year, its worst start to a year on record .

As reported by The Information, Microsoft executives have instructed managers across major divisions, including Azure cloud and North American sales, to freeze hiring to reduce costs and boost margins ahead of the June fiscal year-end . The hiring freeze is not company-wide and does not affect divisions like Copilot and some AI-related engineering groups .

This move may have a significant impact on Microsoft's workforce, but it's worth noting that the company has not confirmed the hiring freeze in all its divisions.