Microsoft's non-executive rank-and-file employees will receive one-time payments based on their roles, up to 25% of their annual bonus, after The company announced record earnings for the fourth quarter..
Payments (via CNBC), while welcomed by workers, may be one of the ways Microsoft is trying to boost employee morale after its role in Sustained layoffs in the technology industry.
By CNBCThe tech giant is reportedly in panic mode as it tries to retain its remaining talent in the US and recruit even more people, following the strain placed on the job market after the Federal Reserve's aggressive campaign to raise interest rates.
Treat the symptoms of low morale, not the cause
While it may seem good that Microsoft employees are getting their fair share, we are also concerned that one-time payments will only delay any kind of revolt. Prior to the layoffs of 10,000 employees in June 2024 alone, Microsoft CEO Satya Nadella had been clear in 2022 that even something as simple as Raising employee salaries is out of the question.
Having reported revenue of $64.73 billion this quarter, of which $22 billion is net profit, it seems odd that Microsoft seems eager to cut staffing costs, but at the same time feels obliged to show its appreciation to those who remain. It can almost certainly afford to give more than, at most, a quarter of an employee's annual bonus, which is politely left unquantified.
Microsoft's annual revenue rose 16% year over year, and its cloud computing division alone now accounts for 44% of the company's total revenue, marking a 19% year-over-year increase, partly due to the rise in popularity of its Copilot. AI toolThe tone of our coverage of Microsoft's fourth-quarter report suggests the company isn't shrinking, just growing less quickly than company executives would like.
One-off bonuses are unlikely to keep employees who may be unhappy with their perceived lack of job security. It's a tough time to be an employee at a big tech company, and Microsoft may have to do more or risk workers leaving of their own volition.
