BEIJING, Aug. 11 (Xinhua) — Microsoft will fire hundreds of contracted recruiters and talent acquisition staff as hiring remains frozen across the company, three people familiar with the matter reportedly said.
Like many other tech giants, Microsoft relies on contractors to enhance everything from cleaning services to talent acquisition. These contractors may work closely with Microsoft’s own employees. But strictly speaking, they are not employees and cannot enjoy certain perks or benefits of the company.
Earlier this week, the company informed the workers through their agency that their contracts would end on Friday. It is understood that contractors will not receive severance pay, but the agency that employs them will pay any unused paid time off.
Microsoft recently said it would cut less than 1,800 jobs company-wide and slow hiring sharply. A contractor in charge of the hiring effort told the media a month ago that Microsoft is suspending hiring for half of the positions it is responsible for and will suspend hiring for the remaining half the following week.
The people, who requested anonymity to protect future career prospects, said they were aware of three agencies that cut about 200 contractors assigned to Microsoft. Most of the contractors had less than six months left on their contracts when the layoffs began.
Another contractor told the press that they had a long time before their contract expired. “I thought I’d be safe for the next year and a half, but now I’m being laid off.” This individual also requested anonymity out of concern for his future career prospects.
Also this week, Microsoft fired the Modern Life Experience team and told Modern Life Experience employees to find another job with the company within 60 days or receive severance pay. Some estimates put the size of the team at 200 people.
Microsoft did not comment, but in response to questions about the layoffs this week, a Microsoft spokesperson referred to CFO Amy Hood’s statement on the July earnings call: “As we move through this period, we will continue to invest in future growth while maintaining a strong focus on operational excellence and executive discipline. “
