Are cracks starting to show at Microsoft?
Jean-Luc Ichard/iStock Editorial via Getty Images

Microsoft (NASDAQ:MSFT), which has been classified as one of the stalwarts of the tech industry amid the recent market decline, looks as if it may not be completely infallible after all.
That's because Microsoft (MSFT) may be tapping the brakes a bit on his hiring plans, according to a report from Bloomberg, which says the software giant is slowing down on adding new employees in its Windows, Office and Teams groups.
Citing an internal email that was confirmed by a Microsoft (MSFT) spokesman, Bloomberg said the slowdown comes as the company begins to change staffing priorities and deals with an uncertain global economy. All new hires need to be approved by Executive Vice President Rajesh Jha and his team.
Earlier this month, it was reported that Microsoft (MSFT) âwould "nearly double" its salary budget and increase the range of employee stock compensation by at least 25%. The budget increase is an understanding that Microsoft (MSFT) needs to deal with rising inflation, while also remaining competitive with other tech companies in the battle for top talent.
Several third-party estimates, including ZipRecruiter and Glassdoor, note that there is a wide variety in Microsoft (MSFT) employee salaries, with pay dependent upon job function, and software engineers some of the highest paid in the company.
According to Payscale, the average annual salary of a Microsoft (MSFT) employee is $122,987, along with a $14,000 bonus.
The slowdown in hiring may not be companywide, but the three aforementioned groups have aided Microsoft's (MSFT) strong growth in recent years.
Microsoft (MSFT) said in April that its most recent quarterly revenue was boosted by productivity and business segment, which includes Office 365, as it rose 17% year-over-year to $15.8B, largely due to a 17% jump in commercial Office 365 revenue growth.
The company's More Personal Computing unit, comprised of Windows, Xbox, search and Surface, rose 11% year-over-year to $14.5B, led by a 23% rise in search and news advertising revenue
Overall revenue for the quarter $49.4B in revenue, aided by a 32% year-over-year rise in cloud-related revenue.
It's possible that the slowdown in hiring, specifically for Office, is the result of slowing growth.
UBS analyst Karl Keirstead lowered his estimates for Office 365 revenue growth for Microsoft's (MSFT) fiscal 2023 in April, noting there could be a "gentle deceleration" due to high penetration and the work-from-home boom starting to fade.
Other companies in recent days have pointed to slowing growth for a variety of different reasons, notably Snap (SNAP) and Nvidia (NVDA).
Snap (SNAP) pointed to a deterioration in the macroeconomic environment that occurred "faster than anticipated."
Conversely, Nvidia (NVDA) said its second-quarter revenue would be impacted by roughly $500 million, due to the war in Ukraine and China's Covid-related lockdowns.
Even Apple (AAPL), which has been lumped in with Microsoft (MSFT) as two of the top tech stocks to own amid the rocky market, said last month that its upcoming quarter would be impacted by as much as $8 billion due to a variety of factors.
While Microsoft (MSFT) shares have fared better than some of its competitors, having declined 20% year-to-date, it looks as if the software giant may not be completely immune to economic uncertainty.
On Monday, investment firm Jefferies cut the per-share price targets on several tech companies, including Microsoft (MSFT), citing "stiffening economic headwinds and the risk of recession looming" over the economy.