Microsoft's Layoff Spree To Adds 1000 More Employees To Its Kitty

Last year, Microsoft made headlines with a significant announcement of cutting 10,000 jobs. Since then, the company has undergone several smaller rounds of layoffs, the latest occurring in May of this year. Now, under the leadership of Satya Nadella, Microsoft has announced another round of layoffs affecting around 1,000 employees across various departments, including the mixed reality division and the Azure cloud unit.

The mixed reality department, responsible for developing the HoloLens 2 augmented reality headset, is one of the most affected areas. Despite these cuts, Microsoft plans to continue selling the HoloLens 2 and supporting its existing customers and partners. The company also reaffirms its commitment to the Department of Defense's Integrated Visual Augmentation System (IVAS) program, which utilizes a modified version of the HoloLens. However, the success of the HoloLens has been somewhat limited since its introduction in 2015, with reports of user discomfort prompting ongoing updates and improvements.

"Earlier today, we announced a restructuring of Microsoft’s Mixed Reality organization. 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," Microsoft spokesperson Craig Cincotta told The Verge in an emailed statement.

Despite these layoffs, Microsoft's Azure cloud unit continues to experience growth, fueled by substantial investments in artificial intelligence (AI) and its partnership with OpenAI, the creator of ChatGPT.