Microsoft has frozen salaries for all full-time workers this year as it invests billions of pounds in artificial intelligence (AI). The company is the latest US tech giant leader to invest in the uncertain demand in artificial intelligence.
A company spokesman said, “Navigating both a dynamic economic environment and a major platform shift requires us to make critical decisions in how we invest in our people.”
Microsoft CEO, Satya Nadella explained in an internal memo that the pay freeze was necessary to generate “enough yield” to invest in the major platform shift towards artificial intelligence, Bloomberg reported.
“As a senior leadership team, we don’t take this decision lightly, having considered it over several months,” Nadella added.
“This year the economic conditions are very different across many dimensions, including customer demand, the labor market, and the investments required for the next cycle of innovation.”
Microsoft had already raised compensation in 2022. The company will consider raising rates for hourly workers while maintaining a bonus and stock award programme without “overfunding” it, Nadella added.
The software company reported quarterly profit sales last month. Microsoft is investing a reported $10 billion into OpenAI and a Bing internet search Chatbot in a bit to rival Google.
The company began cutting thousands of jobs this year, following similar moves from Meta, Twitter and other tech giants. The software company cut 5% of its workforce in the UK, leaving about 11 000 unemployed.
