Microsoft will reportedly remove around 1,000 employees, affecting departments including the mixed reality team working on HoloLens 2, as reported by CNBC. Business Insider noted that the Azure for Operators and Mission Engineering teams will also face significant cuts, impacting hundreds of employees. This new wave of layoffs comes over a year after Microsoft let go of over 10,000 employees.
CEO Satya Nadella had then mentioned plans to change the hardware portfolio. Since then, Microsoft has acquired Activision-Blizzard, invested in artificial intelligence, and launched new Surface devices with Qualcomm chips.
Despite the layoffs, Microsoft assured its commitment to ongoing projects, including the Department of Defense’s IVAS program and continued sales of HoloLens 2. In a statement to CNBC, the company said "We remain fully committed to the Department of Defense’s IVAS program and will continue to deliver cutting edge technology to support our soldiers.”
"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," a Microsoft spokesperson told Reuters.
Formed in 2021, the Azure for Operators and Mission Engineering department handles projects like Azure Space, telecom initiatives, and quantum computing.