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.
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.