'Slap in the face': Employees miffed after Microsoft skips pay hikes amid AI push

In the midst of tough economic conditions, Microsoft has announced that it will not raise salaries for its full-time employees this year. However, the company will continue to offer bonuses, stock awards, and promotions to its workforce. The decision comes after the company's earlier announcement in January to let go of 10,000 employees, which was part of a larger cost-cutting measure.

One software engineer employed by Microsoft has described the company's recent decision not to increase salaries for full-time employees this year as a "slap in the face." Isabela Moreira, who holds the position of senior software engineer, expressed her dissatisfaction on social media following the announcement by the tech giant.

Microsoft, which is now focused on the lucrative field of generative AI, has been investing in this technology through its collaborations with OpenAI, a leading research organisation in AI. Microsoft has been incorporating AI tech into its Office products and search engine, Bing, as part of its efforts to remain competitive in the market.

In a recent internal email, CEO Satya Nadella stated that Microsoft was committed to driving a major platform shift in the new era of AI. This comes as the company faces increasing competition and global macroeconomic uncertainties. 

Despite the challenging economic conditions, the tech giant will maintain its bonus and stock award budget for the year. However, it will not overfund to the extent it did last year, bringing it closer to its historical averages.

"We recognise 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 spokesperson for Microsoft said.

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