2023-05-11 09:51:16
Microsoft decided to freeze the salaries of all full-time workers this year to help it navigate macroeconomic rifts, becoming the latest US technology company to tighten its belt during a period of mounting uncertainty.
CEO Satya Nadella explained in an internal memo that the move is necessary to generate “a sufficient return for investment in the platform’s major shift toward artificial intelligence.” He added that Microsoft has already raised salaries in 2022. Nadella said the company, however, would consider raising hourly workers’ wages with Preserving the rewards program and reward shares without “over-financing” it, according to what was reported by “Bloomberg”, and viewed by “Al Arabiya.net”.
“As a company, we understand that navigating a dynamic economic environment and significant platform shift requires us to make critical decisions regarding how we invest in our people,” a company spokesperson said.
This comes as technology companies have scaled back and cut expenses globally to take into account tepid consumer demand and shore up financial resources ahead of a potential recession. This year, Microsoft started cutting thousands of jobs, joining Meta and Amazon.
The software company last month reported quarterly profits and sales that beat expectations, and is making big bets on artificial intelligence.
“As a senior leadership team, we do not take this decision lightly, having considered it over many months,” Nadella said in his memo. “Economic conditions this year are very different across many dimensions, including customer demand, the labor market and the investments required. for the next innovation cycle.
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