Microsoft’s tally of job cuts in 2024 is going up as the company announces plans to lay off employees from their mixed reality department. Microsoft HoloLens’ layoffs are unsurprising considering how the company has not invested too heavily in its mixed reality services over the last few years. The HoloLens has not been a successful product among the general public, but Microsoft has contracts with the U.S. Department of Defence for a modified version of the project. This contract is likely a big part of what keeps the product department running and why the downsizing at HoloLens is not occurring on an even larger scale. Unfortunately, that isn’t the end of the layoffs as Microsoft Azure is also set to see job cuts this year.
Image: Microsoft “Azure Maps”
Microsoft Job Cuts in 2024—Azure and HoloLens Layoffs
The Microsoft HoloLens layoffs have been confirmed by a spokesperson to CNBC, who associated the move with a restructuring effort at the company’s mixed reality organization. The email stated. “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.” If there was any doubt about the contract being the main source of support for the project, then the statement put those concerns to rest.
Over 1,000 employees will be included in the Microsoft job cuts in 2024, and there are no indications that the company plans to rehire to fill in those positions for now. Microsoft has no plans to introduce the next generation of the headset but it will continue to sell the HoloLens 2 for those who are interested.
In addition to these outgoing employees, Microsoft’s Azure team is also facing job cuts according to Business Insider. The exact number of employees who are to leave the organization is unclear but the report says “hundreds” will be moving out. The Azure for Operators and Mission Engineering team is part of the company’s Strategic Missions and Technologies (SMT) organization, which works on quantum computing and space-related technology. A large part of these layoffs have to do with the services falling in importance in comparison to AI, with Microsoft shifting its energy and resources towards those investments instead.
Microsoft Layoffs News: The Company Already Had a Round of Job Cuts Earlier This Year
Microsoft’s job cuts in 2024 began early in the year within the company’s gaming division, where approximately 1,900 employees were let go. More specifically, they were eliminated from the recently acquired Activision Blizzard team. Microsoft had acquired the gaming company after extensive conversations around the contract, and the immediate layoff came as a surprise to many. Not only was the Microsoft layoffs news upsetting for employees but the Federal Trade Commission was also shocked at the turn of events. During the acquisition proceedings that took the shape of an antitrust trial, the tech company had claimed it intended to “maintain the pre-merger status quo” with its “vertical acquisition of Activision.”
According to Polygon, a horizontal merger would have necessitated the elimination of any overlapping roles, but despite claiming that was not their intention, Microsoft Gaming CEO Phil Spencer clearly stated that the layoffs were a response to identified “areas of overlap.” Microsoft had made it clear that they would allow Activision Blizzard to function as an independent unit and almost immediately went against their own word, leaving the FTC dissatisfied.
The confirmation of the Microsoft layoffs has left many disappointed and worried about the number of employees that will be affected. Many are also grateful that layoffs aren’t occurring on the same scale as before when 10,000 employees were laid off from the company. We haven’t found any reports on what kind of support and compensation will be provided to these outgoing employees but the hope is that the support will be substantial.
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