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Microsoft would leave support for HoloLens 2 dead with 1,000 layoffs and makes a change in Azure strategy
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The commitment to develop corporate AI would choke the development of Microsoft’s cloud with 500 more layoffs
Just a few days ago, Microsoft publicly presented its new generation of laptops in which it placed special emphasis on the artificial intelligence capabilities of Copilot+. In a veiled way, what Microsoft was also presenting at that event was the new direction that the entire company was going to take.
A few hours ago, The Verge published that Microsoft sources had confirmed that new layoffs were going to occur in order to reorganize the mixed reality divisions that developed software for HoloLens 2 and in the Azure cloud.
Microsoft cut 10,000 jobs in 2023 and they continue in 2024. The company led by Satya Nadella began 2023 by cutting 5% of its workforce, and continued with more rounds of layoffs in the middle of the year, shedding more than 10,000 employees. On that occasion, the argument was the need to reduce operating expenses and streamline its structure. Something similar to what Google or Meta have argued.
The layoffs that are going to occur will be aimed at reorganizing the HoloLens 2 development departments and, as published Business Insiderwould also affect the group of specialists of the moonshots from Microsoft, dedicated to the development of quantum computing and space technology applications in Azure.
Microsoft strategic reorganization. Craig Cincotta, Microsoft spokesperson, made the announcement of new layoffs at the company official through a statement sent to The Verge. “Today we announced a restructuring of Microsoft’s mixed reality organization. We remain fully committed to the Department of Defense’s IVAS program and will continue to provide cutting-edge technology to support our Soldiers. Additionally, 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.”
Sources of CNBC They confirmed that Microsoft’s mixed reality division would be the one that would suffer the most cuts with more than 1,000 positions. While the departments of Operators and Mission Engineering, dedicated to innovation and development in Azure of communication solutions and spatial data processing, would suffer the dismissal of several hundred employees. In total, it is estimated that there will be around 1,500 layoffs between the two divisions.
The long shadow of OpenAI. Microsoft’s latest product presentation highlighted the strategic importance of the alliance between Microsoft and OpenAI in consumer devices, and what is to come in future versions of Windows.
This repositioning to give greater prominence to AI in business settings could be moving the Microsoft cloud to the background, prioritizing the development of corporate AI functions. “Organizational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic areas of growth for our future and in support of our customers and partners,” Cincotta said in his statement.
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Image | Unsplash (Valent Lau)
