Microsoft continues to tighten its belt, even after it announced plans to lay off 10,000 of its employees earlier this year. Today, a new report says the company will not be giving its full-time employees raises this year.
The report comes from CNBC, which said the news came earlier today via a company-wide email from Microsoft CEO Satya Nadella. The email also reportedly said that performance bonuses for top executives will be down compared to last year and that standard bonuses and stock option rewards would be more in line with previous normal levels.
These new budget-trimming measures come even as Microsoft is trying its best to lead the way in generative AI development with its Bing Chat chatbot. Those efforts were also mentioned in Nadella"s email. according to CNBC:
“We are clear that we are helping drive a major platform shift in this new era of Al, and doing so in a dynamic, competitive environment while also facing global macroeconomic uncertainties,” Nadella wrote.
The email comes even as Microsoft prepares for some big events in the next month. On May 23, it begins its annual Build developers conference, and on June 11, it will stream the Xbox Games Showcase.