Microsoft Planning "Significant" Cuts, Source Says Layoff Reports "Exaggerated"S

Xbox 360 manufacturer Microsoft is reported to be jumping on the cost-cutting bandwagon, according to reports from CNBC. Said to be pursuing "significant" savings measures, spokespeople say that reports of mass layoffs are greatly exaggerated.

Over the past week, reports from other sources, namely Fudzilla, pegged the Redmond giant as laying off as much as 17% of its 95,000-plus workforce, a figure that doesn't include contractors. Fudzilla speculated that the newly profitable games division would be unaffected.

CNBC's source says that the Fudzilla reported is "grossly exaggerated" and that cost-cutting measures include attrition — meaning employees leaving voluntary by retirement or resignation wouldn't be immediately replaced — and the non-renewal of contract employees.

If Microsoft does scale back, it would likely announce those plans officially before the end of the month.

Competitor Sony is also rumored to initiate severe cuts in 2009, with The Times reporting that the electronics and entertainment giant would shutter "major divisions." Things are tough all over, man.

Microsoft Readies Cuts; Though Big Layoffs Unlikely [CNBC via Seattle PI]