Microsoft announced on May 10 that it will skip salary hikes for full-time employees this year. The tech-giant cited tough economic conditions for the move however it also said that it will continue with its bonuses, stock awards and promotions.
Earlier this year in January the tech company witnessed a mass layoff wherein the company let go 10,000 employees.
"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 tech giant said, addressing the decision.
Microsoft is continually focusing resources on Artificial Intelligence, spending billions of dollars in the form of investment in ChatGPT maker OpenAI. The tech giant has also been infusing generative AI into its Office products and search engine Bing.
The 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," Insider reported, quoting from Nadella's email.