Microsoft to Lay Off 1,000 Employees in Latest Round of Job Cuts

Microsoft Shake-Up: Restructuring Confirmed for Mixed Reality Division

In a recent organizational overhaul, Microsoft disclosed layoffs aimed primarily at its mixed reality division, which oversees the HoloLens 2 AR headset. However, the tech giant reassures ongoing commitment to the HoloLens 2 and the Department of Defense's IVAS program.

Microsoft Initiates Layoffs: A fresh round of layoffs has been confirmed by Microsoft, predominantly impacting its mixed reality division, responsible for the HoloLens 2 augmented reality headset. CNBC reports that over 1,000 employees are affected by the decision.

A Microsoft spokesperson confirmed the restructuring to CNBC via email, stating, “Earlier today, we announced a restructuring of Microsoft’s Mixed Reality organization.”

Despite the layoffs, Microsoft assures the continuity of the HoloLens 2 and other AR-related initiatives. The spokesperson emphasized, “We remain fully committed to the Department of Defense’s IVAS program and will continue to deliver cutting-edge technology to support our soldiers. Additionally, 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.”

According to a report by The Information, many of the job cuts are concentrated within the “company’s Strategic Missions and Technologies organization, which focuses on selling Microsoft’s cloud software and server rentals to businesses with highly specialized 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, it phased out Windows Mixed Reality, which encompassed various tools for mixed-reality headsets. However, Microsoft underscored its ongoing commitment to HoloLens. “This deprecation doesn't affect HoloLens. We remain committed to HoloLens and our enterprise customers,” as quoted by CNBC.