Microsoft has told more than 1,000 contract staff to take seven days off without pay, in a bid to cut costs.
The company told the staffing agencies that supply it with contractors that the software development staff would not be needed this week or for two further working days. The temporary layoff has affected contractors in the US and India.
Microsoft said the company was not over budget but had made the move because some spending areas had to reduce costs in order to keep to their budgets in the run-up to the end of the financial year on 30 June.
The seven days’ worth of work is understood to have been deferred until the new financial year.
In April, Microsoft shares fell 11%, following forecasts that profits would be hit by increased spending next year. The company is expected to spend $2bn more than originally estimated in the next financial year.
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