However, layoffs will not occur within the Windows development team run by Steven Sinofsky, said one anonymous poster. The team is rapidly preparing Windows 7, the successor to Windows Vista , for release potentially later this year.
The Windows client division, which sells Vista and XP, saw revenues fall 8 percent in the second quarter, due to weak PC sales.
Layoffs include both those judged by their Microsoft manager to be poor performers, also called the bottom "ten percenters," as well as those who were working on products, services or features that were cut, according to reports.
One poster claimed to have been let go after eight years at Microsoft despite positive reviews in the past.
"Not sure what they use as criteria for laying people off, since I'm new to the group that I'm in," the poster wrote. "However, it seems bogus to me that they don't look at your track record."
The spokeswoman said that "every division is assessing its portfolio and prioritizing investments based on the best opportunities in the current economic environment."
Those laid-off for poor performance will lose access to Microsoft's network by Friday, while those whose jobs were eliminated for other reasons are being given 60 days to find another job within Microsoft, according to reports.
"Severance benefits will be available to impacted individuals," the spokeswoman said. "While the specific severance benefits will vary by country, impacted employees in the US may be eligible for a minimum of 60 days of pay, as well as severance pay that is calculated on tenure and level."
During its conference call earlier today, Microsoft said it would also cut the number of contractors by as much as 15 percent. The spokeswoman declined to say how many contractors Microsoft has now.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.