Microsoft Layoffs: Mixed Reality Department Impacted, HoloLens 2 Sales Continue

Tech: Microsoft Confirms Layoffs in Mixed Reality, but Will Keep Selling HoloLens 2 Headsets

Multiple Layoffs

• Microsoft has confirmed that it will lay off employees working on mixed reality technology, which encompasses virtual and augmented reality.
• The reduction affects the department responsible for HoloLens 2, an augmented reality headset, but Microsoft has emphasized its continued commitment to selling the device.
• This move follows a round of layoffs last year that impacted 10,000 employees, including some in mixed reality.
• Microsoft has reportedly laid off over 1,000 people, including those in mixed reality, according to sources familiar with the matter.

Reasons for Layoffs

• Microsoft has struggled to achieve significant commercial success with the HoloLens since its debut in 2015.
• Despite a contract with the U.S. Defense Department for a modified HoloLens called Integrated Visual Augmentation System, soldiers reported experiencing nausea and other issues.
• Microsoft has shifted its focus towards commercializing artificial intelligence and integrating it into existing products.

Continuing Support for HoloLens 2

• Microsoft has reiterated that it will continue to sell the HoloLens 2 headset, which was released in 2019.
• The company has not indicated plans for a new model, with previous reports suggesting the cancellation of a third version.
• Microsoft remains committed to supporting existing HoloLens 2 customers and partners.
• The company continues to develop and support Mesh, a feature that enables users in headsets to engage in three-dimensional Teams video calls.