The current economic situation is affecting everyone and now rumors are flying that Microsoft could be making job cuts as well. MarketWatch is reporting that rumors of cutbacks are being fueled partially by a web site created by anonymous person who claims to be a Microsoft employee. According to the site Microsoft plans to lay off as much as 10 percent of their team sometime in mid-January..

However, others have speculated that Microsoft will not lay off anyone but simply reorganize and slow down plans for new products. Microsoft's game division has already taken cuts in the past two years, shutting down their FASA Interactive studio in 2007 and earlier this year announcing that their Dallas based Ensemble Studios will close their doors in early 2009. Naturally Microsoft would not comment on the rumors.