Rumors of Microsoft layoffs persist

If you haven't heard about it yet, the rumor mill has been working overtime with talk of impending layoffs at the world's largest software company, Microsoft. Some speculated figures ran as high as 15,000, and there are rumors that the axe is scheduled to fall on January 15th--one week before the software giant is due to release its quarterly financial report. A late-breaking CNBC report, that cited Microsoft sources, says the cuts will only come from contractors and agencies, as well as from normal attrition. It will not whittle down the full time staff strength.

Before you dismiss layoffs by Microsoft as impossible, you might want to consider that some analysts, such as Brad Reback from Oppenheimer & Co., believe staff cuts by Microsoft would be "healthy" given the state of the economy. Reback was quoted as saying, "[the layoffs will send a] signal that profitability is more important than revenue growth during this very difficult time."

For more on this story:
- check out this article at Network World
- check out this article at Seattle Post-Intelligencer

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