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Microsoft freezes wages

May 11, 2023.

Microsoft, Redmond, Washington, USA.

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Even with strong financial results, Microsoft is tightly controlling payroll costs. The company does not plan any raises for its employees this year. In an internal memo obtained by The Verge, Microsoft CEO Satya Nadella told employees that only hourly workers would receive raises, a move he attributes to economic uncertainty. “We are clear that we are helping drive a major platform shift in this new era of AI, and doing so in a dynamic, competitive environment while also facing global macroeconomic uncertainties,” he writes. “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.” Nadella pointed out that the management team will also not be getting any salary increase and will receive lower annual bonuses. Microsoft already announced layoffs of 10,000 people or 4.5% of its global workforce at the beginning of the year.

The Verge, Emma Roth, “Microsoft won’t give salaried employees raises this year.”