Microsoft layoffs: Tech giant announces job cuts; 1,000 employees to be laid off

Microsoft layoffs: Microsoft has confirmed a fresh round of layoffs, primarily affecting its mixed reality unit, which is responsible for the HoloLens 2 augmented reality headset. According to CNBC, over 1,000 employees are being asked to leave.

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A Microsoft spokesperson confirmed to CNBC via email, saying, “Earlier today we announced a restructuring of Microsoft’s Mixed Reality organisation." 

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Despite the layoffs, the HoloLens 2 and other AR-related programs will continue unaffected. “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.

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A report by The Information indicates that many job cuts are within the “company’s Strategic Missions and Technologies organisation, which aims to sell Microsoft’s cloud software and server rentals for businesses with highly specified needs such as telecom firms and space companies.”

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Microsoft has been scaling back its investment in the mixed reality unit for some time. In December 2023, it deprecated Windows Mixed Reality, which included several tools for mixed-reality headsets. However, Microsoft stated then that it remains committed to HoloLens. “This deprecation doesn't affect HoloLens. We remain committed to HoloLens and our enterprise customers,” Microsoft said, as CNBC quoted.