"Reduction of contingency fuel" doesn't mean a lot without further information. More importantly, what is the targeted landing fuel for normal operations?
For example, our 747s are planned for 10,500 Kg for landing at the destination or 7,000 at the alternate, whichever is more restrictive. If the flight is such that FAA required reserves are more, then obviously more is added. HOWEVER, liberal use of Planned Redispatch in flight often gets us right down to the company minimums, even on long-haul flights.
Our company has been employing a "Fuel Wise" program to reduce carried fuel. So far it has resulted in several diverts that would otherwise have not been made, and at least 3 times I have landed with around 5,500 Kg, which goes against another policy statement: "No flight should ever plan to land with less than 5,500 kgs." That 5,500 Kg level guarantees only 1 go-around and subsequent approach...