By Jo Best, 21 May 2004 14:50
NEWS Microsoft – hardly known for its lack of cash – has told employees it will be cutting their medical care allowance and other benefits in an effort to cut costs.
The unlucky US staff were told they will now be expected to cough up more towards the cost of their prescriptions if they choose brand names over generic medications and will see their stock option discounts reduced from 15 per cent to 10 per cent in an effort to save the company tens of millions of dollars.
Staff joining the Redmond giant will also be rewarded with less annual leave, while new parents will find they have a smaller timeframe in which to take their parental leave.
Ken DiPietro, corporate vice president of human resources, told employees via email: "These benefit changes will significantly reduce our operating costs... They also better align our benefits with those of our competition while still keeping us ahead of the market average," adding the changes would better balance employees' and shareholders' concerns.
The move comes as part of Microsoft's strategy of trying to maintain its operations' costs for 2004 at the same level as those for 2003.
In September, Microsoft also put a stop to its free stock option scheme, which had turned some lowly techies into millionaires.
It's not all bad news though - some employees' perks won't be ditched. Staff essentials such as free fizzy pop at work and gratis gym memberships will remain untouched.
Comments
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1. Doug Hoffer
I would suggest that MS employees look seriously for other jobs!
When a company, sitting on 50 billion dollars in cash, would rather hurt it's employees than dip into it's Big Piggie Bank in order to meet some unnecessary goal, the GREED of it's LEADership becomes as undeniable as it's employee's lack of value and job security.
2. royston
perhaps the millionare workers have got big ideas of their own and microsoft doesnt want them gettin big ideas maybe.savein millions by removein workers perks is a bad idea. sack the penny pincher responsible and make the company ahead of the rest not put it in line with them.they wont atract techies with this move its a bad idea for such a powerful organisation.the bigger the better...the more the merrier...i can see some workers trying ideas out of their own to make up the shortfall in there anual finances cos nobody likes a cut like this in their income and perks.....disgusting for a multi billion company to do this as they are not in financial dificulty...far from it.or paerhaps gates got a super computer somewhere that says hes going to lose all his cash and be poor as the rest of us if he doesnt do this.
3. anonymous
You IT folks should stop whining and be thankful you still have jobs. Its just a matter of time that most of your jobs will be off-shored due to Capitalism chasing the lowest labor dollar.