Microsoft CEO Satya Nadella has told employees that only workers on hourly pay would receive raises this year.
Nadella noted the uncertain state of the economy on the company’s recent decision, according to an internal memo obtained by The Verge.
“We must maintain a leadership position in our at-scale businesses of today, generating enough yield to invest and lead in the next wave while staying on the frontiers of both performance and efficiency,” wrote the CEO. He would go on to state that Microsoft is undergoing a platform shift in “new era of AI.”
The company will still give bonuses and stock awards to its salaried employees, but Nadella warned that the company would not overfund to the extent that it was able to in 2022. The CEO said that he, along with the rest of Microsoft’s leadership team, would not be getting raises either and that annual performance-based bonuses would be lowered as well.
The news comes after a poor year from Microsoft, with the company already having announced layoffs affecting 10,000 workers across the company and terminating the contracts of its entire society and AI ethics team.
Recently, likely in an effort to turn its fortunes, reports surfaced indicating Microsoft has plans to make Bing the default search on Firefox.
Microsoft’s net income came in at $18.3 billion for its latest quarter.
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Source: The Verge