On the same day that Google presented its ChatGPT competitor, Microsoft is tightening its belt further, announcing to staffers that it won’t be raising salaries for full-time workers this year.

Earlier this week, Microsoft cut over 700 Linkedin employees, and shut down a Chinese work placement app it had launched. In January Microsoft announced plan to axe 10,000 workers, in its biggest cull in over eight years.

The company gave a subdued current-quarter outlook, with its cloud computing sector growing after years of rapid growth.

“As a company we recognise that navigating both a dynamic economic environment and a major platform shift requires us to make critical decisions in how we invest in our people, our business and our future,” a Microsoft spokesperson said of the salary freeze.

The company said it will, however, offer promotions, bonuses and stock awards to full-time employees this year.