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As a wave of economic uncertainty hits Big Tech, Microsoft is reining in the fun money.
What happened: Managers are telling big spenders that those corporate cards are for emergencies only, as new cutbacks to the company’s budget target expenses for business travel, team gatherings, and other things that make people want to work at tech companies.
- Last month, Microsoft decided to cut jobs to realign business groups and roles, despite intending to grow its headcount in the coming months, per Bloomberg.
Why it matters: It’s not just delivery and fintech startups feeling the effects of recession fears. Investors may be pulling their money out of risky ventures first, but now we’re seeing more established companies, with once seemingly limitless budgets, announcing cutbacks.
- Microsoft went from massive product launch parties to managers paying out of pocket for picnics, but many companies are rolling out similar cost-cutting measures.
- Within the last month, companies like Wix, Softbank (obviously), Warner Bros., and Allbirds have all announced they’re poking around for places to cut costs.
Bottom line: Companies are playing smarter, not harder, with their budgets as they look to stay afloat (so we’d suggest holding off on any questions about this year’s Christmas party).