Microsoft is set to lay off around 1,000 employees, with significant impacts on the mixed reality team working on HoloLens 2 and the Azure for Operators and Mission Engineering teams. This follows a major layoff of over 10,000 employees last year. Key projects like Azure Space and telecom initiatives will also be affected.
Despite these layoffs, Microsoft reassures its commitment to ongoing projects, including the Department of Defense’s IVAS program and the continued sale of HoloLens 2. In a statement, the company emphasized that organizational adjustments are a regular part of business management, allowing them to invest in strategic growth areas.
CEO Satya Nadella previously indicated changes to the hardware portfolio, and since then, Microsoft has acquired Activision-Blizzard, invested in AI, and launched new Surface devices. The company remains focused on delivering cutting-edge technology to support its customers and partners.