Microsoft Rewards Employees with One-Time Cash Bonus Following Record Profits

Microsoft employees are set for a tasty bonus following record profits

One-off bonus of up to a quarter of an employee's annual bonus is good but might not be enough Non-executive 'rank and file' employees at Microsoft are set to receive one-off payments based on their roles, up to 25% of their annual bonus, after the company announced record profits this Q4. The payments (via CNBC), though welcome for workers, may be one of the ways that Microsoft is trying to boost employee morale following its role in sustained layoffs in the tech industry. Per CNBC, the tech giant is reportedly in panic mode as it attempts to retain its remaining US based talent, and recruit yet more people, following the strain placed on the labor market after the Federal Reserve's aggressive campaign of hiking interest rates. While it may look good that Microsoft's employees are getting their due, we're also concerned that one-off 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 straightforward as raising salaries for employees is out of the question. Reporting revenue this quarter of $64.73 billion this quarter, with $22 billion of that being net profit, it seems odd Microsoft seems to be eager to cut back on personnel spending, but at the same time feels compelled to give tokens of appreciation to those that remain. It almost certainly can afford to give more than, at maximum - a quarter of an employee's annual bonus, which is helpfully left unquantified. Microsoft's annual revenue is up 16% year-on-year, and its cloud computing division alone now accounts for 44% of the entire company's revenue, marking a 19% increase year-on-year - in no part due to the rise in popularity of its Copilot AI tool. The tone of our coverage of Microsoft's Q4 report suggests that the company isn't shrinking, just growing less quickly than company executives will like. It's unlikely that one-off bonuses will keep employees that are perhaps disgruntled about their perceived lack of job security on-side for too long. It's a difficult time to be a Big Tech employee, and Microsoft may have to do more or risk its workers leaving of their own accord.

Microsoft is giving one-time cash awards of up to 25% of annual bonus to these employees: Read the company's memo - Times of India

Microsoft is giving a special one-time cash award to its employees, amounting to an additional 10% to 25% of their annual bonus value for the recently concluded fiscal year. The announcement came as the tech giant reported strong fourth-quarter earnings, surpassing Wall Street expectations. Kathleen Hogan, Microsoft's chief people officer, communicated the decision in a company-wide memo, stating, "The senior leadership team and I want to recognize the tremendous work and impact of our people who delivered a terrific year of solid execution and world-class innovation." These employees are being awarded The special award will be distributed to employees at levels 67 and below, including hourly workers and equivalents.Executives are excluded from this bonus. Lower-level employees will be eligible for higher percentages to ensure a more equitable distribution. "For example, employees in higher levels such as 67 would receive a cash award equivalent to approximately 10% of their annual bonus, whereas employees level 61 and below would receive a cash award equivalent to approximately 25% of their annual bonus," Hogan explained in the memo. Microsoft announces 10% profits in fourth -quarter The company reported fiscal fourth-quarter earnings of $64.7 billion, up 15%, and profits of $22 billion, up 10%. However, Microsoft shares fell more than 5% in after-hours trading due to disappointing growth in its Azure cloud business. While specific dollar amounts were not disclosed, the special cash awards are expected to amount to thousands of dollars per employee in many cases. The payouts are scheduled for September. This move comes after a period of mixed compensation decisions at Microsoft. In 2022, the company nearly doubled its global budget for merit-based salary increases, but later made job cuts and decided against pay raises for full-time salaried employees in 2023. Hogan emphasized that the award recognizes employees' contributions to Microsoft's success: "We recognize our FY24 success is a direct result of the incredible focus, creativity, and collaboration of our people and our collective efforts as One Microsoft." The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Microsoft To Offer One-Time Cash Reward To Employees Worth Up To 25% Of Their Bonus, After Q4 Earnings Beat Estimates: Report - Microsoft (NASDAQ:MSFT), Advanced Micro Devices (NASDAQ:AMD)

Microsoft Corp. MSFT has announced a special one-time bonus for its employees after reporting fourth-quarter results and beating earnings estimates. What Happened: The bonus will be equivalent to 10% to 25% of the regular annual bonus of employees. This announcement comes at the end of Microsoft's fiscal year, coinciding with the company's impressive performance in the cloud and AI sectors. The bonus is also seen as a strategic move to retain talent in the competitive AI market, The Verge reported on Wednesday, citing an internal memo. The company's fourth-quarter earnings, released on Tuesday, revealed a 15% year-over-year increase in revenue, totaling $64.7 billion. This exceeded the Street's consensus estimate of $64.36 billion. Microsoft has been making significant strides in enhancing its AI capabilities. The company recently integrated advanced models from OpenAI and hardware accelerators from NVIDIA Corp. and Advanced Micro Devices, Inc. into its Azure cloud platform. Microsoft did not immediately respond to Benzinga's request for comment. See Also: Thiel Reportedly Reassessing Trump In Wake Of Vance Pick 'In Spite Of Many Misgivings' He Had Earlier This Year Why It Matters: The recent bonus announcement is in line with Microsoft's ongoing efforts to recognize and reward its employees. In October, leaked documents revealed the different levels of pay, bonuses, and stock awards that Microsoft employees receive, providing insight into the company's approach to employee compensation. Despite the recent bonus announcement, AI stocks are expected to experience a temporary dip due to the company's underperformance in the Azure sector. However, analysts remain optimistic about the long-term prospects of the AI industry, citing continued heavy investment in big tech infrastructure, particularly Microsoft's Capex, which saw a 55% YoY increase. Price Action: Microsoft Corp's stock closed at $422.92, down 0.89% on Tuesday. In after-hours trading, the stock fell further 2.72%. Despite this, the stock has risen 14.03% year to date, according to data from Benzinga Pro. Read Next: Lindsey Graham Reportedly Tried To Persuade Trump To Not Pick JD Vance As His Running Mate: GOP Senator Wanted This Candidate As Ex-President's VP Pick Image Via Shutterstock This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote Market News and Data brought to you by Benzinga APIs