Employees have taken to internal communication channels to express their frustration and disappointment. One comment posted in response to Nadella’s internal memo read, “Here employees take pay cuts as our company and leadership make record profits. It’s not right, no other way to look at it.” The sentiment of many employees centers around the perception that the top decision-makers, who already earn substantial salaries, should demonstrate gratitude by unfreezing pay raises for the rest of the workforce.
This pay freeze comes in the wake of Microsoft’s recent cost-cutting measures, including layoffs affecting more than 10,000 employees. These actions were implemented in response to economic challenges and the need to streamline operations after over-hiring during the pandemic. Microsoft has also been refining its hybrid working policies to adapt to the changing landscape of work.
