Economic turmoil causes Microsoft to freeze employee salaries, agency says

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According to the company’s chief executive, the measure is necessary so that they can generate ‘sufficient income’ with artificial intelligence. Satya Nadella, CEO of Microsoft, on February 27, 2019 Tobias SCHWARZ/AFP Microsoft has decided to tighten its belt and freeze the salaries of all full-time employees this year amid uncertainties in the global economy, according to Bloomberg. Why tech billionaires are losing money in 2023 In an internal memo, the company’s chief executive, Satya Nadella, said the move is necessary so that the owner of Windows can generate “sufficient income” on its bets with artificial intelligence . “This year, economic conditions are very different on many dimensions, including customer demand, the job market and the investments needed for the next cycle of innovation,” wrote Nadella. Despite the freeze, the executive claims that the company is considering raising rates for hourly workers, in addition to ensuring a bonus program and rewards for actions taken. Microsoft also made mass layoffs Earlier this year, Microsoft had announced the layoff of 10,000 workers by the end of the third quarter of the 2023 fiscal year, which takes place between April and June. The cut represents about 5% of the total employee base, the company said. The “big techs”, as they are known Apple, Microsoft, Meta (owner of Facebook, Instagram and WhatsApp), Alphabet (owner of Google) and Amazon – are going through a bad time. To begin to understand their situation, it is necessary to take into account the consecutive hikes in interest rates in recent months in the United States to contain inflation. In addition to impacting sales, the scenario has made companies reduce advertising spending, which has a direct impact on technology giants that depend on ads. In the case of Microsoft, the company is dealing with a decline in the personal computer market after a boom in the early years of the pandemic. ALSO READ: Love scam: see tips to protect yourself when using relationship apps Elon Musk announces new female CEO of Twitter and confirms leaving office after 6 months ‘I already encourage my children’; ‘beginning can be frustrating’: professionals tell what it’s like to work with programming

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