Microsoft Fires 1000 Employees From Cloud, Mixed Reality Divisions

Sheetal Bhalerao

Sheetal Bhalerao

Jun 07, 2024

It appears that the American multinational corporation and technology giant, Microsoft is all set to lay off more than 1,000 employees across different businesses, as per a recent media report.

Microsoft Fires 1000 Employees From Cloud, Mixed Reality Divisions

Microsoft Planning 1000 Employees Lay Off

The news of these job cuts comes after significant rounds of layoffs at Microsoft.

Prior to this, the Redmond, Washington-headquartered company announced that it would cut 10,000
roles throughout 2023.

“Most of the job cuts are within the aims to sell Microsoft’s cloud software and server rentals for businesses with highly specified needs such as telecom firms and space companies,” said a media report, citing the people familiar with the situation.

In an email sent to CNBC, the spokesperson said, “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.”
Besides this, Microsoft has also reaffirmed its commitment to Mesh.

Changes Affecting Azure Cloud and Hololens Mixed Reality Teams

This feature allows headset wearers to join 3D video calls in Teams alongside colleagues on any device.

The company’s CEO Satya Nadella said that the company’s focus is on “reimagining how employees connect and collaborate,” regardless of their device (PC, HoloLens, Meta headset, etc.), during last year’s Microsoft Ignite conference in November.

These cuts are mostly going to impact the Azure cloud and Hololens mixed reality teams.

Basically this move represents Microsoft’s strategy to restructure the organization.

This will also affect many employees working on futuristic projects, including space exploration and quantum computing.

Considering the latest trend, the IT service provider has been reducing its investments in virtual and augmented reality offerings to bolster its investments in artificial intelligence technologies.

This appears to be the company’s strategy as this is being the key for the company to keep ahead of its competitors while building a new customer base for products and services such as OpenAI’s ChatGPT, Copilot, and AI features in Microsoft 365.

Sheetal Bhalerao
Sheetal Bhalerao
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