Microsoft CEO Says No Raises for Full-Time Staff in 2023

Microsoft has determined to chop raises for full-time employees this 12 months, citing that hackneyed chorus: “tumultuous financial situations.”

Information of Microsoft’s resolution was relayed to managers in an e mail from CEO Satya Nadella, whose yearly wage ballooned by 10% to $55 million final 12 months, this morning, Insider studies. In line with the e-mail, Nadella knowledgeable managers that raises wouldn’t be granted to full-time workers this 12 months, however hourly workers are nonetheless eligible to obtain elevated compensation. Likewise, the CEO wrote that whereas bonuses and inventory awards are nonetheless on the desk, they won’t be “overfunded,” and workers will nonetheless have the ability to pursue promotions throughout the firm. 

“As a senior management group, we don’t take this resolution flippantly having thought of it over a number of months, and imagine it’s needed to organize the corporate for long run success,” Nadella wrote within the e mail, as quoted in Insider. “Whereas we can have wage will increase for sure hourly or equal roles, we is not going to have wage will increase for full-time salaried workers this 12 months.”

Microsoft Chief Individuals Officer Kathleen Hogan despatched a similar email this morning to managers, writing that “fewer workers will have the ability to obtain distinctive rewards,” additional indicating that bonuses shall be trimmed this 12 months. This time last year, Microsoft was touting hefty raises and rewards for its employees as an inner ballot revealed that solely 66% of surveyed employees had been proud of their time at Microsoft. As Insider factors out, the standard Microsoft annual overview cycle begins with efficiency opinions in April with notification of bonuses and potential raises in August.

Microsoft’s resolution to axe full-time worker raises this 12 months is simply one other signal that the corporate has some hassle balancing its checkbooks. This January, Microsoft chose to lay off over 10,000 employees the day after internet hosting a Sting live performance for firm executives at Davos. Likewise, the corporate opted to invest $10 billion into a deal with OpenAI, the corporate behind the ever-popular AI chatbot ChatGPT.