Microsoft’s Benefits Cuts to Save At Least $80 Million Annually

Microsoft’s cutbacks to employee benefits will save the company at least $80 million each year, according to The Seattle Times.

The company is cutting prescription-drug benefits for employees who want brand-name drugs when a generic drug exists. The stock-purchase program will be scaled back significantly. New employees will get two week’s vacation instead of three (it will increase to three after they’ve worked two years). Employees will have to take parental leave within six months of having or adopting a child, rather than one year.

According to the Seattle Times, Ken DiPietro, vice president of human resources, e-mailed employees to say that the changes were the result of a regular review to ensure that benefit programs “balance the interests of our employees and the expectations of shareholders.” Meanwhile, one anonymous employee told the newspaper that the changes are “a blow to the self-esteem and the work ethic of the average employee. I didn’t find anyone here who was thinking, ‘Wow, this is a great move and this will get the stock up.’”