Do dismal fourth-quarter PC sales mean Microsoft layoffs more likely?

The Wall Street Journal is reporting that holiday PC sales were dismal and Microsoft is "exploring" layoffs.

Neither piece of information is surprising. But even with the latest IDC (and Gartner) numbers, I still will be surprised if Microsoft ends up laying off full-time employees.

Lay off contractors, consolidate business units, reduce and/or freeze hiring in various divisions -- sure. Kill off some of its less successful and more experimental projects -- like rival Google just did with Jaiku, Dodgeball and its mash-up editor -- definitely. But even though Wall Street wants to see Microsoft cut its ranks in the name of cost savings, I'll be very surprised if Microsoft axes any full timers this week or any time before or around its FY 2009 Q2 earnings announcement on January 22.

When anonymous blogger Mini-Microsoft first reported layoff rumors, the alleged cut date was believed to be today, January 15. So far, no word of any casualties, however. If/when there's any new news, I'll update this post.