Microsoft Saves Costs, Trims Down Contractor Pay

Microsoft Saves Costs, Trims Down Contractor Pay

Software company Microsoft is currently reducing its contractor by 10 percent as well as future contractor pay by 15 percent. The move is aimed to save operational costs amidst global financial crisis.


Microsoft already announced last month it intended to cut 5,000 jobs as part of its cost-cutting measures. The company has around 96,000 employees and an undisclosed number of contractors.



The pay reduction is a big blow to contractors seeing that almost all business organizations are trying to gain balance in a truly weak economy. Though pay cuts are fairly better than termination of service, contractors are still deeply affected by Microsoft's decision.



Microsoft said, "We held discussions with some of the impacted agencies and settled on the 10 percent reduction based on the economic climate and the need to achieve greater cost reductions."



Microsoft's CEO expressed the company's intent to look for several ways to reduce costs. He also reiterated the significance of interminable investments during the worlwide economic crunch.