There have been persistent rumors about significant layoffs coming this month at Microsoft. I am told that employees have not heard anything concrete yet, and that no mass firings would likely occur prior to CES (Consumer Electronics Show), which is happening this week in Las Vegas.
Microsoft will send out a memo if the layoffs go down officially, so
we'd know it. That memo would leak far and wide.
The rumors began when both Fudzilla and Mini-Microsoft - two insider's blogs - reported
that Microsoft may lay off 10 percent or more of its workforce before
its second quarter earnings are announced on Jan. 22. That is not to say that the company is not going to reduce its expenses.
It would not be surprising if Microsoft placed a moratorium on most new hires, or at least put the breaks on some groups that may be hire happy. It may also cut back on its use of contractors. The company has ridden out tough economic times before without ever having to resort to mass layoff.
<Update>Mini-Microsoft now says there will be no layoffs, and CNBC is reporting that Microsoft will initiate cost cutting, but not layoffs.