Analysts have already started downgrading performance of MSFT stock in light of the economic conditions. The latest downgrade Friday from Citigroup’s Brent Thill said that “the slowdown that the company saw in October intensified into November and continued into December.” Thrill predicted revenue for the June 2009 fiscal year of $62.5 billion, up just 3%, and below the company’s guidance for 7%-10% growth.

Rumors of job cuts at Microsoft have been circulating for some time, with the latest set of rumors comes from Mini-Microsoft, the anonymous Microsoft employee who has had a strong track record of getting rumors right in the past.

According to Mini-Microsoft, some small scale cuts have already taken place, including the disbanding of product groups, and strange staff meetings have taken place in the last week that some are suggesting are preparation for cuts to come.

Cuts at Microsoft would follow broad sweeping cuts among most of its primary competitors, including Sun, Oracle, and Yahoo. Google is said to be cutting contractors, and has made no official statement confirming broader cuts.

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