Microsoft denies 'major layoffs' report [Update]

Update: Fudzilla has now backtracked on its original story now claiming cuts could come from agency staff, as in contractors. Microsoft has denied massive layoffs are in its future.

These are tough economic times not just for the little guys like us but for major corporations. Corporations like Microsoft. Fudzilla is reporting that long-standing rumors of Microsoft job cuts have been confirmed. Microsoft, who employs 90,000 workers worldwide, will make substantial cuts to its workforce. Microsoft plans are to cut 15,000 jobs, which equals about 17% of all employees come January 15, 2009.

Microsoft's Q2 earnings report is due on January 22, 2009, adding more weight to the expected layoffs date. According to the article, rumblings point to most cuts aimed at the MSN division with potentially larger cuts to Microsoft EMEA (Europe, Middle East and Africa).

Not expected to see cuts are departments and regions that are doing well. Considering console sales are on the upswing, Fudzilla theorizes Xbox employees are safe. But for how long?

This article was originally published on Joystiq.