Google, Intel, Microsoft, Meta, Amazon and a host of other firms had recently decided to downsize their workforce to navigate a challenging macro-economic environment. And now, Amazon, after firing 10,000 staffers, has gone to the extent of announcing that its employees won’t get a hike this year. The company has however agreed to offer promotions, bonuses, and stock awards, claimed a report.
The report added that the firm will not overfund like it did in the previous year, which will bring it closer to historical averages.
According to a report in Insider, Microsoft CEO Satya Nadella has mentioned in an internal email: “Last year, we made a significant investment in compensation driven by market conditions and company performance, nearly doubling our global merit budget…this year the economic conditions are very different across many dimensions.”
A Microsoft spokesperson told a news agency that tough decisions had to be made to invest in people, business, and the future. It’s held that Microsoft has been focusing extensively on AI – this platform shift might have resulted in the growing layoffs.
Collaborating with ChatGPT maker OpenAI, which has received enormous funding from Microsoft, the tech giant has been implementing AI tech into its Office products as well as the search engine Bing.