Microsoft layoffs devastate Windows Mobile division? (Updated)

Microsoft Windows Mobile

Yesterday, Microsoft announced its financial results for Q2 of its 2009 fiscal year. Part of the announcement was confirmation that there would be layoffs. As part of this plan, Microsoft will eliminate up to 5,000 jobs in R&D, marketing, sales, finance, legal, HR, and IT over the next 18 months, including 1,400 jobs today.

According to sources, the layoffs are hitting the Windows Mobile division particularly hard. They report that the division is practically being gutted and that it will be re-built with new hires or contractors.

Assuming this is true, does this mean that Microsoft is cleaning house to take Windows Mobile in a new direction? Windows Mobile 6.5 development is likely done but I wonder what it could mean for Windows Mobile 7.


Update: The situation may not be quite as dire as initially thought. A Twitter comment from John Starkweather from Microsoft indicates that Microsoft is already moving some excellent dev talent to mobility.

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