That rumor appears to be false...
http://blog.seattlepi.nwsource.com/microsoft/archives/158470.asp?source=mypi
Report: "Massive layoff" unlikely at Microsoft
"A CNBC report out today appears to put to rest continued rumors of significant Microsoft layoffs coming this month.
In recent weeks, two blogs -- Mini-Microsoft and Fudzilla -- have both reported that Microsoft is preparing to lay off large numbers of employees before the company announces its second quarter earnings on Jan. 22.
Neither blogger quoted inside sources and both later backtracked on their reports.
Fudzilla, for instance, said in its initial report that Microsoft was considering cutting up to 17 percent of its "90,000 employees," a number which seemed to refer to the 95,768 employees directly employed by the company. That number does not include contractors.
In a more recent report, Fudzilla backtracked saying, "There's a big chance that a large chunk of the 17 percent figure could come out of the agency staff." "Agency staff" refers to contractors."
(more at the link)
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