Microsoft is preparing to take a more conservative approach to hiring within its Windows, Times and Office chat and conferencing software groups, a part of its business that includes some of its most popular products.
The company noted the need to realign staffing priorities as it approaches a new financial year at a time of global economic uncertainty.
Rajesh Jha , executive vice president of the Office product group, told employees in his group to be extra cautious when it comes to new jobs and all new hires should be approved by the executive vice president and his leadership team.
These groups have recently expanded and the company wants to make sure they are making the right appointments in the right places. The slowdown is not company-wide, as the software manufacturer generally continues to hire, noting that such caution is typical in periods of economic volatility.
The move comes a month before Microsoft begins its new fiscal year, when the company is reorganizing itself.
More broadly, Microsoft and other companies across the technology industry are reorganizing as the first half of a disastrous market year draws to a close and inflationary pressures continue to build.
Meta, Nvidia and Snap have announced plans in recent weeks to slow hiring, as the coronavirus pandemic and the war in Ukraine put upward pressure on prices and dampen expectations for the rest of the year.
Microsoft wants to keep employees
” As we prepare for the new fiscal year, we are making sure that the right resources align with the right opportunity ,” Microsoft said . We continue to grow staff in the coming year and add an extra focus to where these resources are going.
The software giant remains focused on retaining the best talent. The CEO, Satya Nadella, announced two weeks ago that the company would double its salary increase budget.
The company’s stock has fallen this year along with the rest of the market. But it has held up better than companies like Alphat, Meta and Amazon, which have more exposure to consumer activity and spending. However, businesses that rely on business spending still face risks as customers tighten their budgets.
And 88% of Microsoft’s quarterly revenue of $11 billion is commercial in nature. Windows and Office are still growing. But not as fast as Azure’s public cloud business, which is second only to AWS in cloud infrastructure.