An American multinational technology corporation, Microsoft won’t raise the salary of employees this year for full-time employees.
According to Reuters, a spokesperson for the tech giant said, “We recognize that navigating both a dynamic economic environment and a major platform shift requires us to make critical decisions in how we invest in our people, our business, and our future.”
As per Insider’s report, Microsoft is reducing its budget for bonuses and stock awards. The company’s CEO Satya Nadella has informed the employees in an internal email.
The report quoted Nadella saying, “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.”
Recently, Wipro to fast-track onboarding more than 90% of the freshers have accepted lower salary options. The company has reduced the employee’s salary by 50 percent from Rs 6.5 lakh to Rs 3.5 lakh per annum.
Jatin Dalal, Chief Financial Officer at Wipro said, “The next-gen associates were given both the options and 92% of the campus hires chose to join Wipro at the original offer.”
Earlier in January, Microsoft conducted a third round of layoffs. These layoffs are part of “10,000 job cuts” that were announced by the company to be conducted worldwide due to the global economic slowdown.
Tech companies have either frozen the hiring process or laid off many employees. The major companies that laid off employees include Infosys, Amazon, Google, Microsoft, Byju’s, Wipro, and Salesforce laid off a maximum number of workers globally.
So far in 2023, there have been 922 layoffs at tech companies with 266,342 people impacted (2,033 people per day). In 2022, there were 1,557 layoffs at tech companies and 243,318 people impacted (667 people per day).
