Rumors of Layoffs at Microsoft (MSFT) Continue

Reports from Fudzilla that Microsoft (Nasdaq: MSFT) could be planning large-scale layoffs are receiving widespread attention recently. Following-up on a December 30th article, Fudzilla published a piece this morning giving more reasons why rumors of job cuts at Microsoft could be true.

The initial article proposed that Microsoft could cut about 15,000 employees -- or about 17% of its 90,000 person workforce -- by January 15th. Citing sources familiar with the situation, Fudzilla predicts that a large chunk of the layoffs would come from the MSN branch, a unit that saw many issues over 2008.

This morning's article adds several arguments to the Microsoft layoff gossip, including:

• rumored massive reductions in '09 sales estimates at numerous Microsoft branches, meaning less work for supporting divisions;
  
• a reduction in agency-employed workers (in contrast to full-time Microsoft employees);
  
• a reduction in exotic R&D projects, and
  
• rumors that potentially-laid off employees may be allowed to attempt to find another job inside Microsoft by a deadline. If the worker wasn't hired again at Microsoft by the deadline, the employee would then be officially laid off.

While these claims could make sense, as Engadget puts its, these "reports should be taken with a grain of salt..."

Shares of Microsoft are moving higher today as the broader markets continue moving to fresh session highs. The stock is currently up 2.7% to $19.96.

Microsoft Corporation provides software products for computing devices worldwide.

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