Microsoft CEO is preparing for a more conservative approach to recruiting in a company that includes some of its most popular products.
Microsoft CEO Rajesh Jah, executive vice president responsible for Office and part of Windows. Told his team Thursday to be extra careful when opening new roles and seek permission from Jha’s management team first, according to a man familiar with the matter. Who is not authorized to speak for private conversations? Bloomberg previously announced the changes.
The move comes a month before Microsoft’s new fiscal year, when the company regularly reorganizes. In addition, Microsoft and other technology companies are recalibrating the disastrous first half of the year as markets weaken and inflationary pressures continue to build.
Facebook parent Meta, chipmaker Nvidia also social media company Snap have announced plans in recent weeks to be less aggressive in hiring as the Covid-19 pandemic. And war in Ukraine have helped increase price pressures and dampen prospects for the rest of the year.
When asked about the notification, a Microsoft representative sent the following statement:
“As Microsoft prepares for a new fiscal year, it ensures the right resources are align with the right opportunities. As a result, Microsoft will continue to add staff over the next year. With additional focus on where those resources will go.”
Microsoft is still focus on retaining the best talent in a busy job market. CEO Satya Nadela announced two weeks ago that the company is increasing the amount of money available to increase team member earnings.
While Microsoft’s stock has plunged this year along with other markets. It has outperformed companies like Alphabet, Meta Platforms, and Amazon, relying more on consumer activity and costs.
However, companies that rely on the cost of running a business still face risks when customers tighten their budgets. For example, RBC Capital Markets estimates that nearly 88 percent of Microsoft’s roughly $11 billion quarterly revenue is commercial. Office also Windows are still growing, but not as fast like Microsoft’s Azure public cloud business. Ranking second after Amazon Web Services in cloud infrastructure.