Microsoft Becomes Latest Tech Giant to Slow Hiring

Microsoft has slowed down some of its hiring, being the latest tech giant to be more cautious about hiring. The Washington-based company said it would slow down the pace of hiring employees in software groups that develop Windows, Office, and Teams applications. This group is one of the fastest-growing divisions of the company in recent years.

A company spokesperson has said that the company takes the step in response to growing economic uncertainties as the company approaches the end of its financial year that goes through June. 

Rajesh Jha, the Executive Vice President at Microsoft has said in an email to the employees that the new hires will have to first be approved by upper management, even as the company plans to expand its overall headcount. Earlier, this approval from the upper management was not required for the hiring process. 

Microsoft has pledged better pay to its employees, while the pace of hiring may continue to fall. It also told staff that it would be boosting compensation, as its reaction to challenges created by low unemployment and continuously increasing high inflation.

The company's move to delay the hiring process in one sector as the Federal Reserve raises interest rates and raises concerns about a potential economic slowdown occurring in the wake of the broader tightening of the corporate belt. Other big tech companies such as Meta Platforms Inc, Twitter Inc., and Uber Technologies Inc. have also announced that they will reduce their hiring plans.