US-based tech major Microsoft Corp will not raise salaries for full-time employees this year and is reducing budget for bonuses and stock awards, according to a report by Insider on Wednesday, citing an internal email by CEO Satya Nadella. According to Reuters, Microsoft, however, did not immediately respond to a Reuters request for comment.
Satya Nadella said, "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 said it would let go of 10,000 workers, adding to the tens of thousands layoffs announced before that across the technology sector as it deals with slowing growth in a turbulent economy.
Meanwhile, LinkedIn, a Microsoft-owned firm, has laid off 716 employees, as the company makes changes to its Global Business Organisation (GBO), along with shutting down its InCareer app in China, reported by IANS. The company's CEO Ryan Roslansky said in an email to employees that the move was aimed at streamlining the company's operations.
"As we guide LinkedIn through this rapidly changing landscape, we are making changes to our Global Business Organization (GBO) and our China strategy that will result in a reduction of roles for 716 employees," he wrote late on Monday. "If your role is directly impacted by this decision, you will receive a calendar invitation within the next hour for a meeting with a leader from your team and a representative from our GTO," he added.
Microsoft has now squarely placed its focus on generative AI, an area the industry sees as a bright spot.
In collaboration with ChatGPT maker OpenAI, which also has received billions of dollars in funding from Microsoft, the tech giant has been infusing the AI tech into its Office products as well as search engine Bing.