Microsoft Corp. Will slow hiring in its Windows, Office and Teams chat and conferencing software groups, citing a need to realign staffing priorities as it approaches a new fiscal year in a time of global economic uncertainty.
All new hires must be approved by Executive Vice President Rajesh Jha and his leadership team, Jha told employees in an email Thursday, a Microsoft spokesperson said. Those groups have expanded recently and the company wants to make sure it’s making the right hires in the right places, the spokesperson said. The slowdown is not companywide, and overall the software maker will continue to hire, the spokesperson said, noting that such caution is typical in periods of economic volatility.
“As Microsoft gets ready for the new fiscal year, it is making sure the right resources are aligned to the right opportunity,” the company said in a statement. “Microsoft will continue to grow headcount in the year ahead and it will add additional focus to where those resources go.” The company’s fiscal year starts July 1.
Other big technology companies have been slowing or freezing hiring in the past several months as stocks plummet and fears of an economic recession escalate. Chipmaker Nvidia Corp. Said Wednesday it expects to decelerate hiring in the second half of fiscal 2023, and companies such as Meta Platforms Inc., Snap Inc. And Salesforce Inc. Have taken similar steps.
Earlier this month, Microsoft said it will nearly double its budget for salary increases and boost stock grants in order to better retain key workers.