Microsoft will not give employees salary raise this year

Microsoft will not raise salaries for full-time employees this year and is reducing budget for bonuses and stock awards

May 11, 2023 10:16 am | Updated 11:52 am IST

File photo of the Microsoft logo

File photo of the Microsoft logo | Photo Credit: Reuters

Microsoft Corp. will not raise salaries for full-time employees this year and is reducing budget for bonuses and stock awards, Insider reported on Wednesday, citing an internal email by CEO Satya Nadella.

The tech giant did not immediately respond to a Reuters request for comment.

"Last year, we made a significant investment in compensation driven by market conditions and company performance, nearly doubling our global merit budget...this year the economic conditions are very different across many dimensions" the report quoted Nadella saying.

In January, Microsoft said it would let go of 10,000 workers, adding to the tens of thousands of layoffs announced across the technology sector as it deals with slowing growth in a turbulent economy.

(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)

Microsoft has now squarely placed its focus on generative AI, an area the industry sees as a bright spot.

In collaboration with ChatGPT maker OpenAI, which also has received billions of dollars in funding from Microsoft, the tech giant has been infusing the AI tech into its Office products as well as search engine Bing.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.