According to individuals familiar with the situation, Microsoft Corp. cut jobs in areas such as Surface tablets, HoloLens mixed reality equipment, and Xbox on Thursday. This is as part of its 10,000-worker layoffs announced last month.
According to some individuals included in the matter, layoffs of much of the HoloLens hardware team cast doubt on whether Microsoft will manufacture a third edition of the goggles. According to one of them, marketing and the Xbox Gaming Ecosystem Group have parted ways.
The Xbox Chief, Phil Spencer, notified workers on Thursday about the layoffs without revealing which elements of his business were under fire. Spencer said in his message that he hopes everyone will take the time and space to digest these changes and support their colleagues.
Has there been a shift in Microsoft’s core commitments?
Microsoft declined to discuss these changes. However, it affirmed its intention to continue developing mixed reality and the existing HoloLens 2. The business has stated that while they won’t comment on specific workforce details, they can assure that there are no changes to HoloLens 2 and their dedication to mixed reality. This is the information from an emailed statement pointing to a blog entry from last week.
According to a notice provided with the state, 617 workers were laid off in the Seattle region. Microsoft announced last month that over the next quarter, it would cut 10,000 jobs, or around 5% of its employees. Last quarter’s earnings had a $1.2 billion loss. Most of it is due to personnel losses and changes to their hardware portfolio. The firm hasn’t revealed how the hardware modifications or cuts will affect individual users. Not even where they occurred geographically.
All in all, with the unemployment rate currently at historical lows, Microsoft’s layoffs may not be as drastic as they first appear.
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