Microsoft announces mixed reality layoffs but will sell HoloLens 2

In brief

  • Microsoft is terminating some mixed reality (virtual and augmented reality) workers.
  • The company will keep selling HoloLens 2 headsets, released in 2019.

A Microsoft official told CNBC on Monday that some mixed reality workers will be laid off. Microsoft will continue to sell the HoloLens 2 augmented reality headset despite the layoffs to the department that makes it.

After laying off 10,000 people, including some in mixed reality, the software maker announced hardware upgrades a year earlier. Some loyal consumers were upset when Microsoft discontinued various keyboard variants in the following months.

“Earlier today, we announced a restructuring of the Microsoft’s Mixed Reality organization,” the representative emailed. “We are committed to the Department of Defense’s IVAS programme and will continue to provide cutting-edge technology to our soldiers. We will also invest in W365 to reach the Mixed Reality hardware ecosystem. We’ll keep selling HoloLens 2 and supporting customers and partners.”

The corporation is laying off over 1,000 staff, including in mixed reality, a source claimed.

Microsoft has struggled with the HoloLens since 2015. However, the Defence Department awarded the business a contract for a modified HoloLens called the Integrated Visual Augmentation System. Bloomberg stated that soldiers using the devices reported nausea and other issues. A revised model performed well in tests.

Microsoft and other high-tech companies have invested billions in AI commercialization since then. Microsoft is deploying Nvidia GPUs to enable Copilot chatbot and ChatGPT support. Microsoft 365 productivity apps’ premium AI can create memos, draft presentations, and summarise meetings.

After deprecating Windows Mixed Reality, which includes tools for running applications in head-mounted displays, in December, Microsoft cut investment in augmented reality and virtual reality, which shut out the world.

The spokesperson stated Microsoft will sell the 2019 HoloLens 2 headset but did not announce a new model. One insider revealed in 2022 that the corporation cancelled a third version.

Apple introduced its Vision Pro augmented reality headset in January.

Microsoft supports Mesh, which allows headset users join three-dimensional Teams video chats. At the November Microsoft Ignite conference in Seattle, CEO Satya Nadella stated that the business was reinventing employee collaboration across devices like PCs, HoloLens, and Meta Quest.

Source : CNBC News

 

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