Microsoft has reportedly announced the layoff where the tech giant removed approximately 1,000 employees. This layoff had a significant impact on its HoloLens mixed reality and Azure cloud teams. This restructuring of the workforce will follow for more than a year after the company laid off over 10,000 employees, as it continues to shift its focus and strategy.
The mixed reality department hit hard
One of the major areas which got affected by the layoffs is the mixed reality department, which was particularly the team working on HoloLens 2.
The news was first reported by CNBC initially, highlighting the significant changes within the organization. Craig Cincotta, spokesperson of Microsoft addressed the situation in a statement to The Verge, where he emphasized the ongoing commitment to the Department of Defense’s IVAS program and the broader Mixed Reality hardware ecosystem.
Cincotta said, “Earlier today, we announced a restructuring of Microsoft’s Mixed Reality organization. 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.”
Azure for operators and mission engineering
On the other side, Business Insider further reported that the Azure for Operators and Mission Engineering departments have seen substantial reductions, with ‘hundreds’ of employees being affected. These teams were formed in 2021 and were majorly designed to handle ambitious projects, including the Azure Space unit which collaborates with companies like SpaceX and develops portable data centers.
Furthermore, these teams are used to support telecom projects and work on quantum computing initiatives.
Strategic shift and organizational adjustments
The layoffs and restructuring come amid broader strategic shifts within Microsoft. Over the past year, the company has focused heavily on artificial intelligence and has made significant moves, like acquiring Activision-Blizzard and promoting ‘AI PCs’ which are powered by Qualcomm chips.
Satya Nadella, CEO of Microsoft has indicated that the company has refined the hardware portfolio, and these changes are part of that ongoing adjustment.
Cincotta added: “Organizational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.”
Commitment to future investments
Despite the layoffs, Microsoft is clear about its commitment to future investments and innovation. The company’s focus on AI and growing technologies has suggested a drive to stay at the forefront of tech advancements.
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