New Delhi: After firing 10,000 employees in January, Microsoft has now given a blow to the remaining employees as well. The company has announced that it will not increase the salary of its full-time employees this year and will also cut the bonus. However, the company will continue to give promotions and awards to the employees. The company has cited challenging economic conditions as the reason behind this decision.
A Microsoft spokesperson said that they recognize the need to make important decisions on investments in their people, business, and future, especially when the company is going through an unfavorable economic environment and major transition. Microsoft is focusing on the lucrative Generative Artificial Intelligence. The company is a major investor in OpenAI and is incorporating AI technology into its products and search engine Bing.
Recently, Insider cited an internal email from Microsoft CEO Satya Nadella, which said that Microsoft is making a significant transition to a new era of AI amid increasing competition and macroeconomic uncertainties. Microsoft will maintain its budget for bonuses and stock awards this year, but will not give out more money than last year, bringing it closer to the average.
“We will again maintain our bonus and stock award budget this year, however, we will not bring it closer to our historical average than last year,” Insider said, quoting Nadella’s email.
Along with many big companies around the world, Microsoft is also facing economic challenges. However, Microsoft’s investment in AI technology seems to be paying off. The stock price of the company has increased significantly in recent years. As competition in the technology sector intensifies, it is likely that a company will need to make strategic decisions to ensure its long-term success.
