Microsoft is laying off 1,000 employees, primarily from two areas—the Strategic Missions and Technologies group and the mixed reality unit. These Microsoft layoffs are part of a broader effort by the tech giant to trim 10,000 roles throughout 2023. The Strategic Missions and Technologies group focuses on selling specialized cloud software and server rentals to businesses with specific needs, such as telecom firms and space companies. Most of the job cuts seem to be within this organization.
Microsoft is also reducing its workforce in the mixed reality unit, which is responsible for developing the HoloLens 2 augmented reality headset. Despite these layoffs, Microsoft has confirmed its commitment to supporting the HoloLens 2 device and advancing its mixed reality initiatives.
Microsoft’s Commitment to HoloLens 2 and AR Programs
A spokesperson from Microsoft assured that despite the recent layoffs, the HoloLens 2 and other augmented reality (AR) programs will continue without any impact. They emphasized their dedication to the Department of Defense’s IVAS program, providing advanced technology support to soldiers. Additionally, Microsoft will keep investing in W365 to expand the mixed reality hardware ecosystem. The company will also continue selling the HoloLens 2 while offering support to existing customers and partners.
Microsoft Layoffs and Shift in Mixed Reality Division
Most of the job cuts at Microsoft have occurred in the Strategic Missions and Technologies organization, which focuses on selling specialized cloud software and server rentals to specific industries like telecom and space companies. Microsoft has been reducing its investment in the mixed reality division. In December 2023, it stopped supporting Windows Mixed Reality, a platform for running mixed-reality headset applications. However, Microsoft clarified that this change doesn’t affect the HoloLens, and they remain committed to it and their enterprise customers.
Tech Industry Layoffs Continue to Rise
Despite economic uncertainties, layoffs persist in the tech industry. In May alone, 39 companies let go of 9,742 employees, as reported by layoffs.fyi. This brings the total number of tech layoffs in 2024 to 89,333 across 306 companies.
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