Software giant, Microsoft said it would be slowing down some of its hirings to become more cautious about adding staff.
The company would be reducing the pace of hiring people for the software group that develops its Windows, Office, and Teams applications. If the company plans to expand its headcount, new hires for the software group will have to first be approved by upper management.
A Microsoft spokeswoman said, “As Microsoft gets ready for the new fiscal year, it is making sure the right resources are aligned to the right opportunity.”
“Microsoft will continue to grow headcount in the year ahead, and it will add additional focus to where those resources go.” The spokeswoman added.
The spokesperson also said that such caution is typical in periods of economic volatility.
Nvidia Corp. has said that it expects to slow hiring in the second half of fiscal 2023. The other companies have followed suit, including Snap Inc., Meta Platforms Inc., and Salesforce Inc.
Microsoft earlier announced to double the budget for its employee salaries to retain them. CEO Satya Nadella said in a memo to staffers that the company is increasing compensation for its employees as the labor market tightens and employees contend with increasing inflation.
The company planned to “nearly double” its budget for employee salary increment and boost the range of stock compensation to give some workers by at least 25%.
This effort was to retain employees and help people cope with inflation. The move will mainly affect early to mid-career employees, the software giant said in a statement.