Microsoft has denied to provide an increment to full-time workers this year
May 11, 2023: On Wednesday, Microsoft planned to skip the salary growths to full-time workers; CEO Satya Nadella emailed the staffers.
The move aligns with Microsoft’s efforts to decrease costs as earnings increase slowly, and clients reel to spend. In January, the software maker stated it would cut 10,000 jobs or just below 5% of its workforce. Alphabet, Amazon, Meta and different tech companies have also downsized recently.
In the previous year, as inflation rippled through the economy, Microsoft almost doubled the budget for merit surged and boosted stock allocations for certain workers. The compensation will look more normal.
“We will maintain our improvement and stock award budget again this year. Therefore, we will not overfund to the extent we did in the previous year, which brings it closer to our historical averages,” Nadella stated in the email.
A person familiar with the matter reported on the message earlier.
Nadella stated performance bonuses for Microsoft’s top executives would considerably decrease from last year.
In April, Microsoft finance chief Amy Hood stated every year, earnings growth in the present quarter would come down to 6.7% from 7.1% in the first three months. The company is known for operating expenses to grow below 2%, compared with 7.4% in the first quarter.
In January, Microsoft started a multibillion-dollar investment in startup OpenAI, which relies on Microsoft’s Azure cloud running its viral ChatGPT chatbot and provide large vocabulary models such as GPT-4 to power apps from Microsoft and a variety of different companies.
In the previous month, Hood said that Microsoft’s capital expenditures would grow quarter over quarter because of assets in Azure AI infrastructure.
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