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Microsoft is not giving salary increases to salaried employees this year

Microsoft is skipping pay raises for salaried employees this year. In an internal memo obtained by The edgeMicrosoft CEO Satya Nadella told employees that only hourly workers will receive wage increases and blamed the uncertain state of the economy.

“It is clear to us that we are helping drive a major platform shift in this new era of AI, and we are doing so in a dynamic, competitive environment while also facing global macroeconomic uncertainties,” Nadella wrote. “We need to maintain a leadership position in our large-scale businesses today, generate enough revenue to invest and lead the next wave, while staying on the cutting edge of both performance and efficiency.”

While Microsoft will still offer salaried employees bonuses and stock awards, Nadella explains that the company won’t “fund as much” as it did last year and will instead bring its spending more in line with previous years. Nadella adds that the senior leadership team, including himself, will also not receive salary increases. They will also receive lower annual performance bonuses.

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