Recession-Strapped MS Reduces Employee Perks

You might not expect it, given the company's highly anticipated operating system release and its virtual domination of several other markets, but Microsoft's having a tough time getting through this recession. Take reports of its latest employee policy, which only reimburses company workers if they purchase Windows Mobile-powered smartphones.

According to reports from the Business Insider and a confirmation from a Microsoft spokesperson, the Redmond-based software giant will no longer reimburse employees who subscribe to smartphone plans with other tech companies, including Research in Motion or Pre. That means that if workers go out and buy a BlackBerry plan or something similar with Palm's Pre, they'll be responsible for paying for it themselves. (Source: arstechnica.com)

Microsoft Trims Costs to Stay Competitive

It's further proof that Microsoft is trying to trim costs in order to remain competitive. In a statement, a company spokesperson said: "This policy took effect as part of the broader cost saving measures announced earlier this year."

In April, Microsoft revealed year-on-year quarterly revenue decline, the first time in the company's history. Then in May, Microsoft completed its plan to cut about 5,000 jobs -- way ahead of schedule. That may or may not indicate that the company is planning more cuts before the end of the year. (Source: crn.com)

Tech insiders believe Microsoft's latest employee smartphone policy is significant: after all, Windows Mobile is considered by many to be a long way behind competitors Research in Motion and Apple, who sell millions of their BlackBerry and iPhone devices, respectively.

In fact, most think that Microsoft employees will hold off on making the switch to their own system until next year, when Windows Mobile 7.0 launches.