Microsoft is set to lay off over 1,000 employees across various units as part of its ongoing restructuring efforts. This move comes after the tech giant announced plans to cut 10,000 roles throughout 2023, as reported by CNBC.
The latest round of layoffs primarily affects Microsoft’s mixed reality unit, which is responsible for the HoloLens 2 augmented reality headset. A Microsoft spokesperson confirmed the news via email, stating, “Earlier today we announced a restructuring of Microsoft’s Mixed Reality organization.” Despite the layoffs, the HoloLens 2 and other augmented reality (AR) programs will continue as planned.
“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 added.
A report by The Information highlighted that many of the job cuts are within the company’s Strategic Missions and Technologies organization, which focuses on selling Microsoft’s cloud software and server rentals for specialized business needs, such as telecom firms and space companies.
Microsoft has been gradually reducing its investment in the mixed reality unit for some time. In December 2023, the company discontinued Windows Mixed Reality, a suite of tools for mixed-reality headsets. However, Microsoft reaffirmed its commitment to HoloLens at that time, stating, “This deprecation doesn’t affect HoloLens. We remain committed to HoloLens and our enterprise customers,” as quoted by CNBC.
These layoffs are part of a broader trend in the tech industry, where companies are adjusting their workforce to align with changing market conditions and business priorities. As Microsoft continues to invest in certain areas, it is also scaling back in others, reflecting a shift in strategy to focus on more promising technologies and services.
The news of these layoffs is a significant blow to the affected employees, many of whom have contributed to important projects and innovations within Microsoft. The company has stated that it will provide support to those impacted by the restructuring.
Microsoft’s decision to cut these jobs is part of its ongoing efforts to streamline operations and concentrate resources on areas with the highest potential for growth. While the mixed reality unit faces reductions, other parts of the company may see increased investment and resources.