CEO Satya Nadella told staffers by email that the move aligns with Microsoft's efforts to reduce costs as revenue growth slows and clients reel in spending.

For those who came in late, Vole said it would cut 10,000 jobs, or just under five per cent of its workforce.

This was a huge hit considering that last year, as inflation rippled through the economy, Microsoft nearly doubled the budget for merit increases and boosted stock allocations for certain employees.

This year, compensation will look more normal.

Nadella said: “We will maintain our bonus and stock award budget again this year, however, we will not overfund to the extent we did last year, bringing it closer to our historical averages."

He added that performance bonuses for Microsoft's top Voles will considerably decrease from last year.