SEATTLE -- Blogs have been abuzz since the Wall Street Journal on Thursday reported Microsoft is exploring "significant workforce reductions."

Microsoft isn't talking, but analysts are.

Analyst Rob Helm's full-time job is to analyze Microsoft. He said the downturned economy and a flat PC Market are to blame for the rumor.

"In the end it's going to be fewer jobs at one of the world's greatest companies and it's going to be really tough on everyone in our area," he said.

When Microsoft releases its earnings one week from Thursday, Helm said we'll know just how deep the cuts will go. But Helm also noted the company's viability.

"Microsoft is a tremendously profitable company. It has no long-term debt. Microsoft is everywhere," he said.

As for those rumors of laying off 15,000 employees? Poppycock, said Helm.

"That's a big disconnect. Microsoft has never done a mass layoff like that," he said.

Instead, Helm suspects Microsoft will do its annual January mid-year review during which each department is reviewed for potential reorganization and most managers are asked to reduce workforce by 10 percent.

"People have to keep in mind Microsoft is always cutting employees one way or another," he said.

The annual layoffs usually don't make news. But this time, Helm suspects the cuts will be deeper and louder.

"I think Microsoft might be a little more open or noisy about it this year. Investors want to see how are you going to deal with a flat PC market," he said.

Microsoft employees appeared unconvinced by rumors of cuts.

"Rumors are rumors. Microsoft is the best company and will continue to be so," said Microsoft employee Anthony Collins.

"I just feel pretty confident I'll have a job for a while. If it happens, it happens," said Joe Massoni.

One Microsoft employee told KOMO News in December the company told employees there would be no layoffs in January. The company would not confirm this statement.