Microsoft is reportedly laying off hundreds of its contract workers as the company slows hiring and lays off some employees.
Microsoft announced in mid-July that it would be laying off a small number of its employees amid “structural adjustments.” Such layoffs are not uncommon for the company at the end of a fiscal year, but the company is now laying off hundreds of contract workers.
Sources told Business Insider the workers were told their contracts were terminated effective this Friday and that they would not receive any severance pay from Microsoft. That is not uncommon for contracted workers since they are not entitled to the same perks as employees. Nonetheless, they may be eligible to receive payment for any unused paid time off.
One of Insider’s sources said they were aware of at least 200 individuals being let go, with many of them only having six months or less on their contracts. Others, however, had significantly more time left.
“I thought I was going to be secure for the next year and a half, and here I am, getting let go,” one contractor said.
Microsoft’s decision is yet another warning sign of the state of the economy.