No hike for fulltime workers in Microsoft; read why
Microsoft Corp. has chosen to freeze pay for all full-time employees this year to assist it in managing macroeconomic turbulence, becoming the latest US IT titan to tighten its belt in the face of rising uncertainty.
In an internal memo, Satya Nadella, CEO of Microsoft, characterised the move as vital to create “enough yield” to invest in the significant platform transition towards artificial intelligence.
He said that Microsoft has already increased remuneration in 2022. However, Nadella stated that the business would examine hiking hourly pay rates while retaining a bonus and stock award programme without “overfunding” it.
“As a company, we recognise that navigating both a dynamic economic environment and a major platform change requires us to make critical decisions about how we invest in our people,” said a company representative. The wage freeze was initially revealed by Insider earlier on Wednesday.
Technology corporations have downsized and cut spending abroad to account for sluggish consumer demand and shore up finances ahead of a potential recession.
Microsoft began laying off hundreds of employees this year, joining counterparts from Meta Platforms Inc. to Amazon.com Inc.
Last month, the software titan announced quarterly earnings and sales that were above expectations, and it is placing enormous investments in AI.
Among these is a rumoured $10 billion investment in OpenAI and a Bing internet search chatbot – a strategy to boost future sales of Azure cloud services, search adverts, and office efficiency programmes.
“As a senior leadership team, we do not take this decision lightly, having thought about it for several months,” Nadella wrote in his memo.
“This year’s economic conditions are very different throughout many dimensions, including customer demand, the labour market, and the investments needed for the next innovation cycle.”
Get all the latest news of Saurashtra on Indian daily post.
