This year, Microsoft declared that they would be laying off close to 10,000 employees. The CEO of Microsoft, Satya Nadella, announced that they would not be getting a salary hike based on the report of a business insider; they won’t pay high executives and will give a smaller bonus.
Based on the email of Nadella that was sent to employees, it was said that we are facing a competitive environment after launching AI in this era, which creates a dynamic picture, which is why we are facing macroeconomic uncertainties.
According to Microsoft, they give bonuses and stock awards, but not too much; they maintain their budget again this year. Last year, in 2022, Nadella called it the “global merit budget,” with a double sense of meaning.
This year will not over fund this condition to the extent that it was last year; it’s coming closer to historical averages. Microsoft offered a sustainable hike to employees in mid-level countries in the region behind that the last year was raising inflation levels.
In this year, there was no hike for Microsoft employees, according to a report, and tech companies have taken drastic cost-cutting measures. However, Google laid off 12,000 employees and reduced many perks.