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What you need to know

  • A leaked email has revealed that Microsoft won’t be raising salaries for full time staff this year.
  • The email comes from CEO Satya Nadella, who says this is due to “economic conditions.”
  • Staff will still be recognized and compensated for exceptional performance.

Microsoft told full time staff this week that they will not be getting an annual salary pay increase due to ongoing economic conditions, according to a leaked email from CEO Satya Nadella seen by Fortune. The news comes just weeks after Microsoft posted strong quarterly earnings results.

“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” Nadella wrote to staff. “As a company, we must recognize that navigating both economic uncertainty and a major platform shift is a crucial time.” 

A Microsoft spokesperson told Fortune:

“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. 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.”

Bonus and stock awards will be closer to historical averages this year, unlike last year. The good news for employees is that the company maintains a promotion budget and will continue to reward employees with exceptional performance. The senior leadership team, which includes the CEO, will also experience lower performance-based bonuses this year compared to last.

Microsoft continues to tighten its belt as a result of the current economic client. In the last few months, Microsoft has laid off over 10,000 employees and realigned its hardware portfolio and roadmap. 

via Yahoo Finance

All the latest news, reviews, and guides for Windows and Xbox diehards.

Zac Bowden is a Senior Editor at Windows Central. Bringing you exclusive coverage into the world of Windows on PCs, tablets, phones, and more. Also an avid collector of rare Microsoft prototype devices! Keep in touch on Twitter: @zacbowden.

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