Microsoft lays off 1,000 employees in these two teams

Microsoft

Microsoft has confirmed that a fresh round of layoffs is taking place. According to a report by CNBC, employees working in the mixed reality unit are being asked to leave. The mixed reality department is the one which is responsible for the HoloLens 2 augmented reality headset.

A Microsoft spokesperson confirmed to CNBC in an email and said, “Earlier today we announced a restructuring of the Microsoft’s Mixed Reality organisation.”

The spokesperson further said that the HoloLens 2 and other AR related programmes will continue and won’t be affected despite the layoffs.  “We remain fully committed to the Department of Defense’s IVAS program and will continue to deliver cutting edge technology to support our soldiers. In addition, we will continue to invest in W365 to reach the broader Mixed Reality hardware ecosystem. We will continue to sell HoloLens 2 while supporting existing HoloLens 2 customers and partners,” the spokesperson noted.

As per the CNBC report, over 1,000 employees are being asked to leave.

A report by The Information also suggests that a lot of job cuts have been within within the “company’s Strategic Missions and Technologies org, which aims to sell Microsoft’s cloud software and server rentals for businesses with highly specified needs such as telecom firms and space companies”

Microsoft has been reducing its investment in the mixed reality unit for a while now. In December 2023, it deprecated Windows Mixed Reality, which included several tools that ran apps for mixed-reality headsets. However, then Microsoft had said that it remains committed to the HoloLens. “This deprecation doesn't affect HoloLens. We remain committed to HoloLens and our enterprise customers,” Microsoft had then said.

Reports have suggested that Microsoft has moved away from mixed reality. In the last two years or so, most of Microsoft’s major investment has been in artificial intelligence.