Microsoft lays off 1,000 employees from HoloLens, Azure cloud teams
What's the story
Microsoft has confirmed the layoffs of approximately 1,000 employees, as reported by CNBC. The mixed reality department, which is responsible for the development of HoloLens 2, is among the teams affected. Business Insider also reported that the Azure for Operators and Mission Engineering departments have experienced cuts with hundreds of employees being let go.
Corporate shifts
Microsoft's previous layoffs and recent investments
This recent round of layoffs follows a previous one over a year ago when Microsoft laid off more than 10,000 people. CEO Satya Nadella stated at that time that the company was altering its hardware portfolio. Since then, Microsoft has completed its acquisition of Activision-Blizzard, made significant investments in AI technology, and initiated a push for "AI PCs" with a new series of Surface devices powered by Qualcomm chips.
Continued support
Microsoft reaffirms commitment to Defense Department's IVAS program
In response to the layoffs, Microsoft issued a statement saying, "We remain fully committed to the Department of Defense's IVAS program and will continue to deliver cutting edge technology to support our soldiers." The company also affirmed its commitment to continue selling HoloLens 2 despite the layoffs in the mixed reality department.
Moonshot projects
Azure for Operators and Mission Engineering Department's ambitions
The Azure for Operators and Mission Engineering department, which also experienced layoffs, was established in 2021. This department undertakes ambitious projects or "moonshots," such as the Azure Space unit that aims to collaborate with companies like SpaceX. They are also working on developing a portable data center in a box and other projects supporting telecoms and quantum computing.