Investing.com - Microsoft Corporation (NASDAQ:MSFT) announced on Wednesday that it will not increase the salaries of full-time employees this year due to difficult economic circumstances. However, the company plans to continue offering bonuses, stock awards, and promotions.
Focusing primarily on the lucrative generative AI sector, Microsoft had previously decided in January to lay off 10,000 workers as a part of its strategy for navigating an unpredictable year ahead along with other technology firms.
A representative from Microsoft acknowledged that managing a shifting economic landscape combined with a significant platform change necessitates making crucial choices regarding investments in personnel, business operations, and future growth.
In collaboration with OpenAI – creator of ChatGPT and recipient of billions in funding from Microsoft – the tech giant has been incorporating AI technology into their Office suite products as well as their search engine Bing.
Earlier on Wednesday, Insider reported an internal email from CEO Satya Nadella explaining how Microsoft is contributing to a major platform transformation during this new era of AI amidst increasing competition and global macroeconomic uncertainties.
According to Insider's report on Nadella's email: "We will maintain our bonus and stock award budget again this year; however we won't overfund like last year but instead bring it closer to our historical averages."