Microsoft slows hiring for Windows, Teams, Office • The Register

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Microsoft has held back hiring in some key product areas as the company prepares for the next fiscal year and all that it may bring.

According to reports from Bloomberg, the unit that develops Windows, Office and Teams is affected and although the headcount is expected to increase, new hires in this division must first be approved by bosses .

Speaking this week at JP Morgan’s technology, media and communications conference, Rajesh Jha, executive vice president of the Office product group, noted that within three years, he expects about two-thirds of CIOs are standardizing on Microsoft Teams. 1.4 billion PCs used Windows. He also remarked, “We have a lot of room here to expand seats with Office 365.”

But not enough room to increase the numbers. At least not without senior management approving the hires first, according to emails seen by employees.

The move follows plans to change employee compensation in what has become a highly competitive market. A memo from Microsoft CEO Satya Nadella, a copy of which was obtained by Geekwire, revealed plans for a near-doubling of the global merit budget and increased stock-based compensation as the company seeks to combat threats from other tech giants in the recruiting space.

“As Microsoft prepares for the new fiscal year, it’s making sure the right resources are aligned with the right opportunity,” a Microsoft spokeswoman told us.

Microsoft’s latest earnings release for the third quarter of 2022 showed an 18% year-on-year increase in revenue to $49.4 billion, including an 11% increase in personal computing to $14.5 billion. . However, the global economic landscape for the next fiscal year is uncertain, hence the more cautious approach to hiring.

Other divisions are unaffected and a company spokesperson said The Reg“Microsoft will continue to grow its workforce over the coming year and put more emphasis on where those resources go.”

Microsoft isn’t alone in taking a tougher approach to hiring. In a call with analysts this week, Nvidia chief financial officer Colette Kress said that following the hiring success earlier in the year, the process “is now slowing down the onboarding of these new employees. “.

“It also allows us to focus our budget on supporting our current employees as inflation persists,” she added. ®

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