The cuts will be detailed during the company's second-quarter earnings report on Thursday, the P-I reports, but no word yet how or if it might effect Microsoft's Entertainment and Devices Division, which includes the Xbox 360.
The P-I did get their hands on a leaked presentation which seems to indicate the company is postponing plans to expand their facilities in Washington, including putting a stop to the expansion plans for the land Microsoft purchased from Nintendo.
It sounds like the company may see pretty big savings from these building cuts, so maybe no people will lose their jobs. Though I can't help but think that the shutting down of Microsoft's gaming blog, Gamerscore Blog, may have had something to do with cost cutting measures.
Microsoft expansion to take a hit to cut costs [Seattle P-I]