Virgin Media to cut contractor pay by 15 per cent
Virgin Media has told its IT contractors they must take a 15 per cent pay cut.
Virgin Media has given 400 IT contractors the ultimatum of taking a 15 per cent pay cut or handing in their badges on their way out.
The cut or bust offer will affect those contractors earning over 300 per day and is similar to a move the company made last year, albeit with an extra five per cent cut added on top.
The contractor pay cuts are coming in despite the company's own income rising by 15 per cent in the last quarter.
A Virgin Media spokesperson played down the move as part of the company's normal process.
The spokesperson told IT PRO: "We regularly review the arrangements we have with suppliers to ensure we are getting the best value from these relationships."
The spokesperson also confirmed that these pay cuts would not affect any of its permanent staff.
Virgin Media is due to release its first quarter results next Wednesday, which may shed more light on why such cuts need to be made, but with it already shedding 2,200 jobs by 2012 the payroll may be looking sparse.
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