Report: Microsoft likely to lay off thousands of employees

Even though Microsoft is doing well with its Xbox business, it appears that it's not invulnerable to layoffs. Bloomberg reports that the company is preparing its biggest round of employee dismissals since it let go 5,000 employees back in 2009.

It appears that certain Xbox marketing teams may be affected by the move. According to the report, a majority of the layoffs will probably be in Nokia, since Microsoft recently acquired it last April. Marketing and engineering divisions, including those involved with Xbox, could also see some cutbacks. Although restructuring details are still being formulated, the job cuts could occur "as soon as this week." Microsoft had no comment on the matter, stating, "Microsoft does not comment on rumor or speculation."

Peter Wootton, a spokesman for Redmond, Washington-based Microsoft, declined to comment. Some of the job cuts will be in marketing departments for businesses such as the global Xbox team, said the people. The European Xbox team is based in Reading, U.K. The company had 127,104 employees as of June 5, after adding about 30,000 in its acquisition of Nokia’s handset unit.