Microsoft’s decision to hold off on raising full-time employee pay might have repercussions for the whole tech industry. Many employees are disappointed and irritated by this choice, which was fueled by slow revenue growth and a need for decreasing costs. Isabela Moreira, a senior software engineer at Microsoft, described the decision as a “slap in the face” in a Twitter post.
No matter what Microsoft decides, according to Moreira, employees are already keeping up with inflation. Her tweet reads, “Microsoft isn’t doing salary increases for non-hourly workers. Time to start acting my wage and saying ‘no thanks to extra projects.
What has Microsoft CEO said in the email?
Insider acquired an email earlier this week from CEO SatyaNadella to all Microsoft employees informing them that pay rises will not be given this year. The company does not take“ decisions lightly,” according to the email, noting that “this year, the economic conditions are very different across many dimensions.”
As a result, the company “will have salary increases for certain hourly or equivalent roles,” but it won’t “have salary increases for full-time salaried employees this year”, the email adds.
Exactly. Not that the merit increases we’re keeping up with inflation but this is a slap in the face.
— Isabela Moreira (@isabelacmor) May 11, 2023
Additionally, a separate email from Microsoft’s chief people officer Kathleen Hogan was released. Only a few employees will be able to receive exceptional recognition, according to the email, which could mean that bonuses will also likely not be given. Regarding Nadella and Hogan’s emails, Microsoft has not provided any clarification.
Due to its over-hiring during the peak COVID-19 waves between 2020 and 2022, Microsoft is still in the process of laying off employees across divisions. As part of its larger restructuring plans, Microsoft is also cutting a job at several of its divisions, including Xbox, Hololens, and LinkedIn.
Employees in the company for a long time were sometimes laid off. Ann Pfeiffer, a former worker, said that the company cut her leave despite her 25 years of service.
This week, Microsoft’s LinkedIn include a comma a job platform announced plans to lay off nearly 700 positions. Additionally, according to a post on LinkedIn, the business canceled job offers to prospective employees who had been accepted into its business programs. Numerous employee posts on LinkedIn claim that the program has also been discontinued.
In the meantime, Microsoft continues to ramp up its attempts to develop newer AI tools in collaboration with OpenAI, the business responsible for the popular ChatGPT. The question of whether AI will replace some employment has been put to Microsoft CEO SatyaNadella on several occasions. In a recent interview, Nadella reaffirmed that AI will create new job opportunities and assist those who have been laid off.