Microsoft announces layoffs, cutting 1,000 jobs amid broader workforce reductions

Microsoft has announced a new round of layoffs, primarily affecting its mixed reality unit responsible for the HoloLens 2 augmented reality headset. According to CNBC, more than 1,000 employees are being let go as part of this restructuring.

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

Despite the layoffs, the HoloLens 2 and other AR-related programs will continue without interruption. “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," the spokesperson noted.

The Information reports that many of the job cuts are within the company’s Strategic Missions and Technologies organization, which focuses on selling Microsoft’s cloud software and server rentals to businesses with specialized needs, such as telecom firms and space companies.

This move follows a trend of Microsoft scaling back its investment in the mixed reality unit. In December 2023, the company deprecated Windows Mixed Reality, which included several tools for mixed-reality headsets. At that time, Microsoft reiterated its commitment to HoloLens. “This deprecation doesn't affect HoloLens. We remain committed to HoloLens and our enterprise customers," the company stated, as quoted by CNBC.