These challenges, according to analysts, point to Microsoft's strategy of caution as we face the very real possibility of recession.
Microsoft declined to provide more current information about the hiring freezes, but earlier this month, employees told Business Insider the company is still hiring for its Azure cloud business, and that some group are "prioritizing consumer-facing and critical roles."as recently as Tuesday, but posting jobs doesn't necessarily mean the company intends to fill those roles immediately.
"No one wants to hire people that they might need to let go six to 12 months from now if the global economy takes a big turn for the worse," Lowe said. One of the reasons Azure could be having trouble meeting capacity, Lowe said, is that Microsoft has improved margins for the business by taking a "balanced approach" in building out its data center network using projected demands without excess capacity. The coronavirus crisis has likely significantly outpaced those projections.
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