Microsoft offers some salespeople extra pay following layoffs

[NEW YORK] Microsoft, fresh off a round of layoffs impacting its salespeople, is offering bonuses to some survivors.

Additional pay for the fiscal year that just ended will go to workers whose annual payout “was affected by systemic challenges or financial performance outcomes outside their control”, according to a document reviewed by Bloomberg. These employees will be paid as if they had reached a higher percentage of their quotas.

“As standard practice, each year we assess incentive compensation in relation to financial outcomes to ensure we are taking care of our sellers, managers and sales leaders,” a Microsoft spokesperson said.

The bonuses could boost employee morale at the world’s largest software company. In recent months, Microsoft has terminated some 15,000 people in two rounds of major layoffs.

In April, the company also told personnel it planned to use third-party firms to handle more sales of software to small and midsize customers.

Microsoft, which began its fiscal year this month, is pushing salespeople to both use and sell artificial intelligence (AI) products.

During an internal meeting earlier this month, chief commercial officer Judson Althoff said Microsoft’s Copilot AI assistant has helped sales personnel find more leads, close deals quicker and generate 9 per cent more revenue. BLOOMBERG