Updated from 2:51 p.m. EST

In an effort to pare back expenses and minimize damage from the recession,

Microsoft

(MSFT) - Get Report

is targeting temporary worksers.

Microsoft will reduce by 10% what it pays staffing agencies for current projects and will not increase rates for workers retuning from mandatory 100-day "vacations," according to

The Associated Press

. The company also intends to cut overtime and overall temporary man hours.

Though Microsoft doesn't divulge how many temporary workers it employs, an analyst with McAdams Wright Ragen estimates it's between 40,000 and 60,000 worldwide, according to the AP.

Microsoft, which recently outlined its

plans

to weather a recession that's already cost it

thousands of jobs

, joins fellow tech giant

Google

(GOOG) - Get Report

in trimming payroll by

targeting temporary workers

.

Yahoo!

's

(YHOO)

taken similar measures, including a salary freeze announced in January in addition to earlier job cuts.

Other companies, like

Seagate Technology

(STX) - Get Report

, are taking pay cuts even further by extending them to regular employees.

Microsoft shares closed down 3.2% to $16.42 Thursday.