According to both Cnet News and Liveside, the services Microsoft will be scaling back, but not eliminating completely include ResponsePoint phone system, its .Net Micro Framework, and its MSN Direct Service. The entire editorial staff of MSDN Magazine and Tech-Net magazine were also eliminated, although it is uncertain if the magazines themselves survived. Windows, Office, Windows Live, and Live Search were mostly unaffected.
While 1,200 of those cuts came from Redmond, WA, other offices were hit including India, Ireland and the UK. The entire Madison, Wisconsin office was also closed according to a comment on Microsoft Mini.
Despite these cutbacks, the company is still hiring, and are still planning to hire 2,000 to 3,000 workers this year in their growing areas of focus.