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Microsoft to cut contractor pay by 10% in the US

by on02 March 2009

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Wants to lower is temporary staff costs by 15%


It seems like Microsoft isn't doing all too well, as the company is about to implement another cost cutting move which could see its contractors lose 10 percent of their pay. The cost cutting is targeting the employment agencies, but this is likely to have a direct affect on the contractors pay.

For now it seems like this only applies to the US, but it's possible that it might be applied to other parts of the world in the future. The changes takes affect from today (March 2nd) and this means that some people might get a slimmer pay cheque at the end of the month.
 

Microsoft wants to reduce its cost for future workers by 15 percent, so those looking at getting a job with Microsoft in the near future, can expect to get paid less than current contractors. Microsoft is also implementing more stringent checks for contractors that will be offered a different pay package outside of the new guide lines.

This also looks like a good way of making people leave the company, as a lot of people couldn't afford a 10 percent pay cut. It almost seems like this is part of a greater plan to lay off some additional staff without having to call it a lay off, but we'll leave that one to the conspiracy theorists.

Considering that contractors get paid far less than full time employees at Microsoft, not to mention that they don't have the same benefits, one has to wonder if this is a wise move in the long run, as it might turn potential staff away from Microsoft. This could cause long term staff problems, but it seems like Microsoft is more worries about its share holders than its employees right now.

You can find more details here as well as the letter send by Microsoft to its employment agencies here

Last modified on 02 March 2009
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