Microsoft Halts Hiring in U.S. Consulting Unit Amid Cost-Cutting Efforts

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Microsoft has decided to pause hiring within its U.S. consulting unit as part of a broader effort to reduce costs, according to a report by CNBC on Tuesday. The move is intended to help the tech giant manage its expenses while continuing to prioritize investments in artificial intelligence (AI).

Earlier this month, Microsoft announced plans to invest $80 billion in fiscal year 2025, primarily focused on developing data centers for training AI models and deploying AI and cloud-based applications. To support these efforts, Microsoft has implemented a series of cost-saving measures within its consulting division. This includes halting new hires and refraining from filling open roles. Derek Danois, a consulting executive at Microsoft, informed employees of the decision in an internal memo.

In addition to the hiring freeze, the memo emphasized strict cost management, instructing employees to refrain from expensing travel for internal meetings, encouraging the use of remote sessions instead. The consulting division, part of Microsoft’s broader Customer and Partner Solutions organization, is also reducing marketing and non-billable external resource spending by 35%.

 

China Announces Crackdown on Illegal Data Handling

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China’s state planner announced plans to intensify efforts to combat illegal practices related to data acquisition, sale, and provision, through newly published regulations aimed at bolstering data circulation security. The authorities are targeting “black and grey industries” involved in the illegal handling of data, with a strong focus on preventing misuse and ensuring the safe and secure flow of data.

The regulations emphasize the importance of tightening data security risk monitoring, particularly in critical industries and sectors. The Chinese government aims to address systemic and large-scale data security risks, ensuring national security and social stability in an increasingly digital world.

The move is part of China’s broader effort to strengthen governance over data use and enhance oversight in response to rising concerns about data privacy and protection.

 

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Over half a million new users have flocked to China’s social media app RedNote, also known as Xiaohongshu, in just a few days, as Americans seek alternatives to TikTok ahead of a potential U.S. ban. The app’s popularity skyrocketed after American social media users began searching for a platform to move to, with RedNote experiencing a surge in downloads in the U.S. and climbing to the second most-popular free app on the Apple App Store.

According to sources, the app gained more than 700,000 new users in just two days. User growth in the U.S. spiked by over 200% year-over-year and 194% from the previous week, based on estimates from app data firm Sensor Tower. The app, which allows users to curate photos, videos, and text, was initially designed for Chinese users but has expanded its reach internationally.

RedNote was caught by surprise by the rapid influx of English-speaking users and has begun scrambling to implement moderation strategies and translation tools to manage the new demographic. Unlike many Chinese apps, RedNote maintains a single version of its app, not differentiating between its Chinese and international user bases, which poses challenges for content moderation.

The spike in users comes as TikTok faces a looming January 19 deadline to either sell or face a ban in the U.S. due to national security concerns. RedNote’s surge is seen as a potential path for the platform to gain global popularity, similar to TikTok’s success. The app’s recent valuation stands at $17 billion, and it has become a popular tool in China for discovering travel tips, anti-aging products, and more.

Some American users view the shift to RedNote as a response to government overreach, with many joining the platform to explore alternatives to TikTok. Despite the excitement, others are skeptical about rebuilding their TikTok followings on a new platform.