Microsoft layoffs: Over 1,000 jobs cut in latest restructuring

Microsoft is set to lay off over 1,000 employees across various units, after the tech giant announced its plan to cut 10,000 roles throughout 2023, reported CNBC.

Microsoft has confirmed a new round of layoffs, mainly affecting its mixed reality unit, which is responsible for the HoloLens 2 augmented reality headset.

A Microsoft spokesperson confirmed the news via email to CNBC and said, “Earlier today we announced a restructuring of Microsoft’s Mixed Reality organisation.”

Despite the layoffs, the HoloLens 2 and other augmented reality (AR) programs will continue as planned.

“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," said the spokesperson.

A report by The Information mentioned that many job cuts are within the “company’s Strategic Missions and Technologies organisation, which aims to sell Microsoft’s cloud software and server rentals for businesses with highly specified needs such as telecom firms and space companies."

Microsoft has been scaling back its investment in the mixed reality unit for some time.

In December 2023, it dismissed Windows Mixed Reality, which included several tools for mixed-reality headsets.

However, Microsoft stated then that it remains committed to HoloLens. “This deprecation doesn't affect HoloLens. We remain committed to HoloLens and our enterprise customers," said Microsoft, as quoted by CNBC in the report.

These layoffs are part of a broader trend at Microsoft and in the tech industry. Companies are adjusting their workforce to align with changing market conditions and business priorities.

As Microsoft continues to invest in certain areas, it is also scaling back in others, reflecting a shift in strategy to focus on more promising technologies and services.

The news of these layoffs comes as a blow to the affected employees, many of whom have contributed to important projects and innovations within Microsoft. The company has stated that it will provide support to those impacted by the restructuring.

Microsoft's decision to cut these jobs is part of its ongoing efforts to streamline operations and focus on areas with the highest potential for growth. While the mixed reality unit faces reductions, other parts of the company may see increased investment and resources.