Microsoft is reducing by 10% the amount it pays employment agencies for supplying temporary workers, reports Seattle-based TechFlash.
Microsoft's decision to cut agency rates will no doubt encourage others to do the same. The move comes after the company axed 1,400 staff last month.
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When the decrease comes into effect on 2 March, temporary workers will fear an impending wage cut as a result.
In a Microsoft memo dated 20 February, obtained by TechFlash, Redmond also stated it would cut the target billing rate for future temporary work by 15%.
Microsoft said the decreases were in response to the worsening economy, and warned agencies that they can expect Microsoft departments to keep a tight rein on temporary worker costs.
Microsoft said reduced or eliminated overtime is on the cards for temporary workers, as well as a reduced number of total hours worked.