Microsoft skips salary increases for full-time employees this year

Microsoft volition clasp disconnected connected offering wage increases to full-time employees, CEO Satya Nadella told staffers by email Wednesday.

The determination aligns with Microsoft's efforts to trim costs arsenic gross maturation slows and clients reel successful spending. In January, the bundle shaper said it would cut 10,000 jobs, oregon conscionable nether 5% of its workforce. Alphabet, Amazon, Meta and different tech companies person downsized arsenic good successful caller months.

Last year, arsenic ostentation rippled done the economy, Microsoft nearly doubled the fund for merit increases and boosted banal allocations for definite employees. This year, compensation volition look much normal.

"We volition support our bonus and banal grant fund again this year, however, we volition not overfund to the grade we did past year, bringing it person to our humanities averages," Nadella wrote successful the email. Microsoft did not instantly respond to a petition for comment. Insider reported connected the connection earlier.

Nadella said show bonuses for Microsoft's apical executives volition beryllium down considerably from past year.

In April, Microsoft Chief Financial Officer Amy Hood said year-over-year gross maturation successful the existent 4th would slow to 6.7% from 7.1% successful the archetypal 3 months of the year. The institution besides called for operating expenses to turn little than 2%, compared with 7.4% maturation successful the archetypal quarter.

In summation to his comments connected pay, Nadella highlighted Microsoft's effort to capitalize connected a increasing artificial quality market.

"We are wide that we are helping thrust a large level displacement successful this caller epoch of Al, and doing truthful successful a dynamic, competitory situation portion besides facing planetary macroeconomic uncertainties," Nadella wrote.

In January, Microsoft announced a multibillion-dollar concern successful startup OpenAI, which relies connected Microsoft's Azure unreality to tally its viral ChatGPT chatbot and supply ample connection models specified arsenic GPT-4 to powerfulness apps from Microsoft and a assortment of different companies.

Hood said past period Microsoft's superior expenditures would summation 4th implicit 4th due to the fact that of concern successful Azure AI infrastructure.

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