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  MS Cuts Bay Area Bonuses
Time: 00:00 EST/05:00 GMT | News Source: Wired | Posted By: Todd Richardson

Microsoft said on Thursday it will reduce take-home pay for 1,600 workers in Silicon Valley later this year because it has determined that a "geographic differential" it had put in place two years ago is no longer needed to retain employees. Under the new pay system, which will take effect in August, San Francisco and Silicon Valley workers will receive a 15 percent differential or bonus, on top of their regular salaries, instead of the current 25 percent premium. Microsoft stressed that the differential was never presented as a permanent salary increase.

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