Microsoft can't afford a salary hike

Microsoft informed their employees that the company won’t increase the salary of full-time employees this year. Due to the financial crisis the company is facing right now, the company clarified that it will keep giving rewards and bonuses but can’t afford a salary hike.

Microsoft has already laid down nearly 10,000 employees this year. The company had already predicted an upcoming difficult era, changing economic conditions and took this measure towards it. Microsoft is currently focusing on profitable artificial intelligence. It has been funded Open AI and is planning to incorporate it in office products as well as search engines. This platform shift and the pressure of economic conditions has made Microsoft reach this decision of cost-cutting.

CEO of Microsoft, Satya Nadella wrote in an email that “they will provide rewards and bonuses but can’t overfund them to an extent as happened last year. “

What Microsoft did is not something new or abnormal considering the situations right after the pandemic. But in fact, looking at long term success, it was necessary.