Microsoft layoffs hit HoloLens, Azure cloud teams
How many employees were affected by the recent layoffs announced by Microsoft?
Microsoft recently announced layoffs that reportedly affect around 1,000 employees. The mixed reality department working on HoloLens 2 is one of the areas impacted, and Azure for Operators and Mission Engineering has also seen cuts of "hundreds" of employees2.
What reasons did Microsoft give for the restructuring of its Mixed Reality organization?
Microsoft has announced a restructuring of its Mixed Reality organization, which involves splitting the organization into two separate entities5. The Mixed Reality hardware teams, including both HoloLens and IVAS projects, will join the Windows + Devices (W+D) organization under Panos Panay5. On the other hand, the Mixed Reality presence and collaboration services, including the new Microsoft Mesh offering, will be joining the Teams organization within the Experiences + Devices division under Jeff Teper5.
The main reason behind this restructuring is to align and further accelerate Microsoft's overall Metaverse efforts as a company. By integrating the Mixed Reality hardware teams as part of Microsoft's broader end-user device hardware organization, the company aims to create compelling Metaverse collaboration experiences, especially in Teams5.
Additionally, Alex Kipman, who has been instrumental in providing vision to Microsoft's Metaverse offerings, will be leaving the company after a two-month transition period. Although the company has not explicitly stated the reasons for Kipman's departure, it is worth noting that Business Insider recently reported alleged inappropriate behavior by Kipman toward women at the company. It is unclear whether Microsoft forced Kipman to leave following this report.
Which specific departments at Microsoft were impacted by these layoffs?
The layoffs at Microsoft impacted specific departments, including the mixed reality department working on HoloLens 2, Azure for Operators, and Mission Engineering2. According to a statement from Microsoft spokesperson Craig Cincotta, the company remains committed to the Department of Defense's IVAS program and will continue to invest in W365 to reach the broader Mixed Reality hardware ecosystem. The organizational and workforce adjustments are a necessary part of managing the business, and Microsoft will continue to prioritize and invest in strategic growth areas for the future in support of its customers and partners.