Microsoft employees will not receive pay raises this year
Per USA Today
Microsoft is implementing a new cost-cutting method where they've decided not to give their employees any pay raise this year. This came as the company cited "economic conditions" as reason why they aren't giving raises.
The company shares how as revenue growth slows down, the company won't be giving full-time employees any raises this year. To top this off, the company has also decided to cut back on stock awards and bonuses.
Microsoft told USA Today that it was still trying to navigate what it called a "dynamic economic environment" while explaining how it needed to be smart in how it invested in people.
“As part of that effort, we are funding our compensation to align with the overall market... While we will not be providing salary increases for our full-time salaried employees this year, we will continue to invest in our employees through promotions, bonus and stock.”
CEO Satya Nadella also gave a statement sharing how they invested in compensations in 2022 based on "market conditions and company performance." During that statement, the CEO shared the difference between last year and this.
Nadella: “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.”
In January, Microsoft reportedly hosted an exclusive, private Sting concert with only the top executives involved. The next day, they announced they would lay off 10,000 employees through March 31.
During that time, the company also decided to push through with its multi-billion investment in OpenAI to "accelerate AI breakthroughs." This came after the company already initially invested $1 billion into the maker of ChatGPT in 2019 as it was looking for ways to rival Google, which still dominates the search engine browser space.
See flow at unusualwhales.com/flow.
Other News:
- Microsoft, MSFT, hosted an exclusive, private Sting concert for top executives on January 17th. The very next day, they announced mass lay offs of 10,000 people.
- Microsoft Will Push Through With Its Multi-Billion OpenAI Investment to 'Accelerate AI Breakthroughs'
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