Microsoft Corp will not increase salaries for its full-time employees this year and is reducing the budget for bonuses and stock awards, according to an internal email by CEO Satya Nadella, as reported by Insider. This move is in contrast to last year when Microsoft nearly doubled its global merit budget, driven by market conditions and company performance.
Nadella acknowledged that economic conditions this year are very different across many dimensions. The tech giant did not respond to Reuters’ request for comment.
Microsoft has been dealing with slowing growth in a turbulent economy, announcing layoffs of tens of thousands of workers in the technology sector, including 10,000 in January. However, the company has focused on generative artificial intelligence (AI) as a bright spot.
In partnership with OpenAI, a maker of generative AI and recipient of billions of dollars in funding from Microsoft, the tech giant has infused AI technology into its Office products and search engine Bing. This collaboration has allowed Microsoft to develop cutting-edge AI capabilities, including natural language processing and machine learning, to improve productivity and efficiency for its users.
Microsoft’s focus on AI is part of a broader trend in the tech industry, where companies are investing heavily in AI research and development to gain a competitive edge. With the rise of AI-driven automation and data-driven decision-making, businesses are looking to integrate AI into their operations to improve performance and reduce costs.
Despite the economic challenges faced by Microsoft, the company is well-positioned to capitalize on the growing demand for AI technology. With a strong track record of innovation and investment in emerging technologies, Microsoft is poised to continue leading the way in the development of generative AI and other cutting-edge technologies.
