^^^ What he said.
Mini-Microsoft is a good source for "from the trenches" info as he is from the rank-and-file employees. He never had any access to strategic info from Microsoft.
Will there be some people let go? Probably, on a very selective and spotted basis.
10,000? No way. And certainly the way you'll learn it will not be through a blog.
Prediction made on 11/1/2008:
Q4 2008: 27M xbox LTD, 20M PS3 LTD . 2009 sales: 11M xbox, 9M PS3