Microsoft lays off 1,000 employees

Microsoft made headlines in January of last year when it announced the elimination of 10,000 jobs. Since then, the company has announced various rounds of layoffs, most recently in May of this year, and now.

The Satya Nadella-led company announced another round of layoffs, which is said to have affected around 1,000 employees across various divisions including its mixed reality division and its Azure cloud unit.

One of the most affected areas is the mixed reality division, which contributes to the development of the HoloLens 2 augmented reality headset. Despite these cuts, Microsoft plans to continue selling HoloLens 2 and support its current customers and partners, and the company remains committed to the Department of Defense’s Integrated Visual Augmentation System (IVAS) program, which It uses a modified version of the HoloLens, however, the success of the HoloLens has been limited since its introduction in 2015, and reports of user discomfort have surfaced, prompting constant updates and improvements.

In addition to the Mixed Reality division, there are also major layoffs hitting the Azure cloud unit, with Business Insider reporting that the Azure Operator and Mission Engineering teams were particularly affected, with hundreds of jobs cut. These teams were part of the Strategic Missions and Technologies organization, which was founded in 2021. To focus on ambitious projects such as quantum computing and space technologies.

Despite the layoffs, Microsoft's Azure cloud unit continues to grow, driven by significant investments in artificial intelligence (AI) and its partnership with OpenAI, the creator of ChatGPT.

The strategic focus on AI has led the company to integrate AI capabilities into its products, such as the Copilot chatbot and premium features in Microsoft 365 apps, which can automate tasks such as writing memos and crafting presentations.