IBNS: Amid massive job cuts, Microsoft CEO Satya Nadella informed the employees that the company will not be offering a salary hike this year media reports said.
Many company employees were hoping for a salary increase following Microsoft’s impressive financial performance in recent quarters.
In the quarter ending December 31, 2020, Microsoft recorded a net income of $16.5 billion, marking an increase from $11.6 billion in the corresponding quarter of the previous year. Also, the tech giant has already announced the termination of over 10,000 employees.
Microsoft CEO Satya Nadella has said that the reason for not offering a salary increase is the uncertainty caused by the Covid-19 pandemic.
In these uncertain times, the company wants to ensure the stability of its business and its employees.
Despite the absence of a salary increase this year, Microsoft has assured its employees that it will maintain its investment in them by offering bonuses and stock awards.
The company has said it wants to focus on supporting the growth and development of its workforce.
This development comes amid the news that Microsoft is planning to lay off thousands of employees, both full-time and part-time, in its retail stores as it shifts its focus to online sales.
However, Microsoft’s commitment to invest in its workers through bonuses and stock awards exhibits that it is still focused on the development and well-being and growth of the employees who will be retained.
Microsoft is not the only company that has laid off many of its workforce. Major tech companies of the world, including Meta, Twitter, and Google, have downsized their teams citing economic uncertainties.