Microsoft said it will not increase salary for full-time employees this year in the wake of tough economic conditions.
Microsoft, however, will offer its bonuses, stock awards and promotions.
Microsoft, which has shifted focus to the lucrative generative AI, in January decided to sack 10,000 employees, which represents less than 5 percent of its total employee base, to improve profit by cutting cost. Microsoft has already recorded employee severance expenses of $800 million during the January-March quarter of 2023.
“We recognize that navigating both a dynamic economic environment and a major platform shift requires us to make critical decisions in how we invest in our people, our business and our future,” a spokesperson for the US-based technology giant said.
Microsoft has made billions of dollars investment in ChatGPT maker OpenAI. The tech giant has been infusing the AI tech into its Office products and search engine Bing.
Earlier in the day, Insider cited an internal email by CEO Satya Nadella that said Microsoft was helping drive a major platform shift in the new era of Al against the backdrop of rising competition and global macroeconomic uncertainties.
“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,” Satya Nadella said in his email to employees.
