- Microsoft is holding off on increasing salaries for full-time employees this year, after providing raises to some of them in 2022.
- CEO Satya Nadella cited economic conditions and an investment in artificial intelligence as he informed employees about the change.
Microsoft will hold off on offering salary increases to full-time employees, CEO Satya Nadella told staffers by email on Wednesday.
The move aligns with Microsoft’s efforts to reduce costs as revenue growth slows and clients reel in spending. In January the software maker said it would cut 10,000 jobs, or just under 5% of its workforce. Alphabet, Amazon, Meta and other tech companies have downsized as well in recent months.
Last year, as inflation rippled through the economy, Microsoft nearly doubled the budget for merit increases and boosted stock allocations for certain employees. This year, compensation will look more normal.
“We will maintain our bonus and stock award budget again this year, however, we will not overfund to the extent we did last year, bringing it closer to our historical averages,” Nadella wrote in the email. Microsoft did not immediately respond to a request for comment. Insider reported on the message earlier.Microsoft Skips Salary Increases for Full-Time Employees This Year — NBC New York
Categories: Economic History
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