Follow us:

Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

January 22, 2009 at 9:36 AM

Microsoft layoffs: What about the contractors? Contractor spending could be down 15 percent

Several people have asked how Microsoft’s cost-cutting plans will affect the thousands of contractors who work for the company doing everything from staffing reception desks to testing software. As early as December, we knew that Microsoft was cutting short some contracts.

“We have plans to significantly reduce our vendor and contingent staff expenses,” Chief Financial Officer Chris Liddell told Wall Street analysts on a conference call this morning.

The company will not put a specific number — in terms of people — on the contractor cuts and it rarely discloses the number of contractors it uses. A spokeswoman declined to do so today.

Liddell did say he expects spending on contractors to decrease about 15 percent.

“External contractors, we think about more in terms of the dollars that we spend overall. That’s on top of the numbers we’re talking about, and that could be down up to 15 percent,” he said.

More coverage of Microsoft’s cost-cutting

Microsoft laying off 1,400 today, up to 5,000 in next 18 months

Ballmer’s e-mail to employees

Majority of cuts to be in Redmond; total reduction is roughly 3 percent

Attention turns to what groups will see cuts

Gregoire calls layoffs “disheartening”

Comments | More in Microsoft layoffs

COMMENTS

No personal attacks or insults, no hate speech, no profanity. Please keep the conversation civil and help us moderate this thread by reporting any abuse. See our Commenting FAQ.



The opinions expressed in reader comments are those of the author only, and do not reflect the opinions of The Seattle Times.


The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►
The Seattle Times

To keep reading, you need a subscription upgrade.

We hope you have enjoyed your complimentary access. For unlimited seattletimes.com access, please upgrade your digital subscription.

Call customer service at 1.800.542.0820 for assistance with your upgrade or questions about your subscriber status.

The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Activate Subscriber Account ►