Hundreds of Employees at Microsoft Are Laid Off in Both Mixed Reality and Azure Departments

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Microsoft is cutting jobs in its mixed reality and Azure teams for operators and mission engineering, impacting employees including members of the HoloLens 2 team. Despite the layoffs, Microsoft plans to continue selling the HoloLens headset. The company remains committed to the Department of Defense’s IVAS program and the broader ecosystem of Mixed Reality hardware. Additionally, Microsoft is reducing staff in its Azure for mission operators and engineering teams, potentially affecting up to 1,500 employees. These layoffs are not unexpected, as both teams are part of the Strategic Missions and Technologies division responsible for Microsoft’s ambitious projects. The layoffs may be linked to Microsoft’s partnership with OpenAI, leading to the restructuring of projects or a shift in priorities towards AI initiatives. Overall, this represents another wave of job cuts impacting the mixed reality and Azure divisions at Microsoft.

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