Microsoft employees won’t be getting raises this year as the tech giant continues to cut costs.
Insider first reported the news Wednesday, citing a memo from Microsoft CEO Satya Nadella detailing why the company decided to halt salary increases — just one year after Microsoft made a significant additional investment in employee compensation.
“As a company we recognize that navigating both a dynamic economic environment and a major platform shift requires us to make critical decisions in how we invest in our people, our business and our future,” a Microsoft spokesperson said in a statement to GeekWire. “As part of that effort, we are funding our compensation to align with the overall market. While we will not be providing salary increases for our full-time salaried employees this year, we will continue to invest in our employees through promotions, bonus and stock.”
The decision to not provide salary boosts comes one year after Microsoft said it planned to nearly double its global budget for merit-based salary increases, and increase its range for annual stock-based compensation by at least 25% for employees at the senior director level and below.
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