Microsoft announces that it will not raise salaries for full-time full-time employees during 2023

On May 10, 2023, Microsoft CEO Satya Nadella announced to the company's employees that they will not raise salaries for full-time full-time employees during fiscal 2023. Reasons for the postponement of salary increases include the economic situation surrounding the company and investment in the AI market.

Microsoft CEO Says No Raises for Full-Time Employees in 2023

Microsoft skips salary increases for full-time employees this year

In the email that Mr. Nadella sent to employees on May 10, 2023, ``I will not raise the salary of full-time regular employees'' and ``Reduce excessive budgets such as bonuses and stock compensation to reduce past averages. It was stated that it should be brought closer to the forehead.

“As a senior leadership team, we have been considering these decisions for months,” Nadella said. I believe we are ready,' he said. It also explains that 'employees who work on an hourly wage system may still be allowed to raise their wages.'

Kathleen Hogan, Chief Human Resources Officer of Microsoft, said, ``This year, the number of employees who can receive special rewards will be exceptionally small.As a result, bonuses for employees will be reduced or suspended this year. There is a possibility that it will be done, ”I am sending an email to my employees.

In January 2023, Microsoft will reduce about 10,000 employees, equivalent to less than 5% of all employees, due to the deterioration of the global economic situation. Microsoft describes the workforce reduction as 'a series of actions to respond to changes in macroeconomic conditions and customer priorities.'

Microsoft decided to dismiss 10,000 people, the second largest personnel reduction in history with a restructuring cost of 154 billion yen - GIGAZINE

In addition, in the financial results for the third quarter of 2023 announced by Microsoft, revenue increased by 7% year-on-year to approximately 52.9 billion dollars (approximately 7.65 trillion yen), and operating income increased by 10% year-on-year to approximately 224. billion dollars (about 2.99 trillion yen), and net income increased by 9% year-on-year to about 18.3 billion dollars (about 2.44 trillion yen), but demand increased due to the epidemic of the new coronavirus. It is announced that sales of hardware divisions such as PC and Xbox have decreased by about 30% due to the end.

Microsoft's revenue exceeded 7 trillion yen, up 7% year-on-year & net profit increased 9%, while hardware sales such as PC and Xbox decreased 30% - GIGAZINE

Regarding the postponement of Microsoft's salary increase in 2023, CNBC, an overseas news media, speculates that ``the reason is to respond to the economic situation surrounding Microsoft and strengthen efforts in the artificial intelligence market''.

“We are helping the growth of leading platforms in the new age of AI,” said Nadella. It's clear what we're doing,' he said, emphasizing Microsoft's efforts to take advantage of the growing artificial intelligence market.

In January 2023, Microsoft will invest billions of dollars (hundreds of billions of yen) in OpenAI, an AI research group that develops chatGPT for interactive AI and DALL E 2 for image generation AI. announced that they have entered into a partnership.

Microsoft announces that it has invested hundreds of billions of yen in OpenAI and signed a long-term partnership - GIGAZINE

'Microsoft's AI capital spending is up year-over-year as it invests more in its Azure AI infrastructure for its AI services,' said Amy Hood, Microsoft's chief financial officer. ” reports.