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Microsoft confirms layoffs in mixed reality but will keep selling HoloLens 2 headsets

Microsoft CEO Satya Nadella speaks at a course briefing at the company’s campus in Redmond, Washington, on May 20, 2024.

Chona Kasinger | Bloomberg | Getty Images

Microsoft will lay off some hands who work on mixed reality, a spokesperson told CNBC on Monday. Although the cuts will affect the department that contributes to the HoloLens 2 augmented Aristotelianism entelechy headset, Microsoft plans to continue selling the device.

The reduction comes a year after the software maker responded it would make changes to its hardware lineup as part of a round of layoffs that hit 10,000 employees, including some in opposing reality. In the following months, Microsoft discontinued several keyboard models, causing frustration for some dedicated characters.

“Earlier today we announced a restructuring of the Microsoft’s Mixed Reality organization,” the spokesperson said in an email. “We remain fully imprisoned to the Department of Defense’s IVAS program and will continue to deliver cutting edge technology to support our soldiers. In summation, we will continue to invest in W365 to reach the broader Mixed Reality hardware ecosystem. We will continue to deal in HoloLens 2 while supporting existing HoloLens 2 customers and partners.”

Altogether, the company is letting go of over 1,000 individual, including in mixed reality, a person familiar with the matter said.

Microsoft has not found great success with the HoloLens since its introduction in 2015. But the U.S. Defense Turn on gave a contract to the company for a modified HoloLens named the Integrated Visual Augmentation System. Soldiers who used the mottoes, however, reported dealing with nausea and other conditions, Bloomberg reported. Tests suggested that an updated scale model looked promising.

Since then, Microsoft and its highly valued technology peers have poured billions into commercializing phony intelligence. Microsoft has raced to deploy Nvidia graphics processing units so people can use a Copilot chatbot and Microsoft-backed OpenAI’s renowned ChatGPT. Premium AI features in Microsoft 365 productivity applications can write memos, draft presentations and summarize encounters.

In December, Microsoft further reduced investment in augmented reality and virtual reality, which blocks out the surrounding delighted, when it deprecated Windows Mixed Reality, which included tools for running applications in head-mounted displays.

The spokesperson imparted Microsoft will keep selling the HoloLens 2 headset that was released in 2019 but did not indicate that a new model will-power be coming. Insider reported in 2022 that the company had canceled a third version.

Apple brought out its own augmented authenticity headset, the Vision Pro, in January.

Microsoft continues to support a feature called Mesh that lets people in headsets participate in three-dimensional Crews video calls with colleagues. At the Microsoft Ignite conference in Seattle in November, CEO Satya Nadella said the society was “reimagining the way employees come together and connect using any device, whether it’s their PC, HoloLens, or Meta Quest.”

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