Microsoft Sets Hiring and Spending Freeze

Microsoft Corp employees received a note informing them of a hiring and spending freeze. The move to freeze spending is a sign that the credit and financial crises is taking a toll on the information technology sector.

Microsoft Corp denies that it instituted a hiring freeze on Friday. However, several employees received a company memo stating that spending is at a freeze. The memo also said that the company is going through a review process.

There are confusing reports on whether the software giant instituted a hiring freeze, but apparently there is something going on.

Some financial analysts say that the financial crisis is causing a credit crunch that will likely slow IT spending by both consumers and business technology companies.

If the business technology company has instituted a hiring freeze, it will be the first time in more than 30 years. However, the economy and the financial crises are taking its toll on IT companies.