Microsoft's Full-Time Employees Reportedly Won't Receive Raises This Year

Microsoft has reportedly told staff that full-time employees will not receive raises this year. The company cited challenging economic conditions as the reason for this decision.

According to Insider, CEO Satya Nadella informed managers of Microsoft's decision via email. In the email, Nadella reportedly stated that full-time employees will not receive raises this year, however, hourly employees may still be eligible for increased compensation.

Additionally, Nadella mentioned that bonuses and stock awards will still be available, although they will not be "overfunded". He also noted that employees can still seek promotions within the company.

"As a senior leadership team, we don’t take this decision lightly having considered it over several months, and believe it is necessary to prepare the company for long term success," Nadella said, according to Insider. "While we will have salary increases for certain hourly or equivalent roles, we will not have salary increases for full-time salaried employees this year."

Additionally, Insider reported that Kathleen Hogan, Microsoft's Chief People Officer, sent a similar email to managers where she also stated that a smaller number of employees will be able to receive "exceptional rewards", which further suggests that bonuses will be reduced this year.

Microsoft's recent decision to withhold raises for full-time employees indicates that the company may be experiencing financial challenges. This is further highlighted by the fact that earlier this year, Microsoft laid off approximately 10,000 employees. However, it is worth noting that during the same period, Microsoft also invested $10 billion in OpenAI, the company behind the AI chatbot ChatGPT.

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