According to an internal email sent by Microsoft Corp. CEO Satya Nadella, the company will not be increasing full-time staff salaries this year and will also be cutting back on its budget for incentives and stock awards.
A request for comment from Reuters received no immediate response from the tech giant. The report quoted Nadella as stating, “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.”
Microsoft stated in January that it would lay off 10,000 employees, adding to the tens of thousands of layoffs that had already been reported throughout the IT sector as it struggles with slowing revenue growth in an uncertain economy.
Microsoft has now dedicated its whole attention to generative AI, an area that the business community considers to be an advantage. Microsoft has been integrating artificial intelligence technology into its Office products and Bing search engine in partnership with OpenAI, the company that created ChatGPT and has also gotten billions of dollars in funding from Microsoft.