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New Delhi: Bad news for full time employees of Microsoft Corp. The company will not increase the salary of its employees this year. Not only this, Microsoft is reducing the budget for employee bonuses and stock awards. An insider told on Wednesday, citing an internal email sent by CEO Satya Nadella. Tech giant Microsoft did not immediately respond to Reuters mail for comment.
Insider has been quoted as saying that Microsoft CEO Satya Nadella said in an internal email that Microsoft is preparing for major changes in the new era of AI in view of increasing competition and global macroeconomic uncertainties.
Citing Nadella’s email, Insider said the company will maintain its bonus and stock award budget this year. However, it will not exceed its historical average compared to last year.
Microsoft is now focusing on the lucrative Generative AI (AI or Artificial Intelligence). Earlier in January this year, the company had laid off 10,000 employees. The layoffs made it one of the largest technology companies to take a similar decision in preparation for a tough year ahead.
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Nadella wrote in the email that as a senior leadership team, they are not taking this decision lightly after many months of consideration and believe it is necessary to prepare the company for long-term success.
Salaries for hourly or similar roles will be increased, but Microsoft will not increase the salaries of full-time salaried employees this year.
