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January 4, 2009

Sources: Microsoft cuts to be through attrition and contractors

Posted by David Hunter at 2:19 PM ET.

The latest installment in the Microsoft layoff rumor saga is provided by CNBC’s Jim Goldman who says that anonymous sources tell him that

Microsoft will embark on a significant cost-cutting initiative in 2009, which might begin as early as this month, to offset a global slowdown in sales.

However, sources tell me the cuts will largely be handled through attrition and the non-renewal of contract employees, rather than through a rumored, sweeping layoff.

Attrition can forced, of course, and non-renewal of contract employees is a standard corporate cost cutting activity albeit a difficult one for the tech industry where contractors often provide organizational bone and muscle, not fat. Still, if these sources are to be believed, there will be no sweeping Microsoft layoffs of regular employees.

Filed under Employee Retention, Financial, General Business, Layoffs, Microsoft

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