Microsoft has decided to terminate the services of several hundred contractors – the company took this action after previously announcing cuts and a slowdown in the hiring rate of new employees. This will be reported Business Insider with reference to three own sources.
Like many large companies, Microsoft often uses contractors for everything from recruiting to cleaning. Contractors can work closely with the company’s full-time employees without enjoying the privileges and benefits of regular employees. Microsoft, for example, announced without too much difficulty that contracts for many of its outsourced professionals will end on Friday, August 12. These people will not receive severance pay, but their employers will be forced to compensate them for unused vacation time.
The tightening of Microsoft’s HR policies will result in 1,800 job cuts and a slowdown in hiring. About a month ago, the company suspended hiring for about half of the positions for which candidates were already selected, according to a Business Insider source. Another said the three agencies had laid off about 200 Microsoft employees – most of whom would have to work for about six months.
Finally, this week the company fired an entire 200-person department called Modern Life Experiences tasked with redefining the company’s consumer appeal. The employees of the department had a choice: find a new job in the company within 60 days or receive severance pay.