So the blog world is all a-buzz with speculation about the rumored Microsoft cutbacks, layoffs, reductions, pruning, shearing or whatever other verb you want to use.  A lot of commenting is going on over at a blog called Mini-Microsoft, written by an insider.  

There are a ton of ways this could play out.  But at the end of the day, if Redmond makes either substantial cuts in one category, or small cuts across all full time heads, contractors, vendors and agencies, Seattle is going to feel a pretty big effect.

To the average Joe, it really doesn’t matter if Microsft makes formal layoffs, or just slows down the amount of contractors it brings on oard, or culls back some of its agencies.  In some shape or form, Steve Ballmer is writing checks to a bunch of people in this town.  Furthermore, if they do slash what they call the “10% ers,” those folks are going to come out with a tainted brand name on their resume.  If you are an employer, how do you justify hiring someone that was let go for being repeatedly on the “underperform” list?

Anyway, the point of this post is that it doesn’t matter what you call it.  Microsoft employing less people globally, means they will be hiring less people in Seattle.  And that causes not just full-time cutbacks, but also across agencies and temp firms.  And that’s bad for the city overall.  Let’s hope these rumors are disproven.