Microsoft Announces that It Is Closing Surface, HoloLens, Xbox and Surface Jobs.
Microsoft is facing slowing growth and macroeconomic uncertainty. Microsoft has confirmed that it will lay off workers on its HoloLens and Surface laptop products. Reports suggest that Microsoft will also be cutting 100 employees from its industrial Metaverse unit, effectively closing that department.
These layoffs are part of a plan to layoff 10,00 workers, which CEO Satya Nella announced earlier in the month.
Microsoft’s recent efforts to expand its initiatives in mixed reality for enterprise customers, which it calls “mixed reality for enterprise customers”, have led to the decision to reduce HoloLens jobs as well as layoffs at its industrial metadata unit. Industry analysts see this market as promising but still in its infancy. The tech giant is being affected by a weak global economy and declining revenue growth.
Sharath Srinivasamurthy (associate vice president of research at IDC) stated that many large technology companies have made adjustments to their numbers. “In this situation, experimental and futuristic technology will be a backseat.” These companies prefer to invest in mature or proven initiatives rather than something too futuristic.
Microsoft’s latest quarterly report was published last month. It stated that cloud demand is waning and reported a 1% increase in net income for the second quarter of fiscal 2023.
Microsoft confirmed Friday that cuts were made to HoloLens and Surface jobs following a Bloomberg report. The Information first reported the decision to reduce the industrial metaverse team. It was created in October.
Microsoft did not specify how many jobs would go, but a worker adjustment and retraining notification (WARN) from Washington on Friday indicated that Microsoft had reported that 617 employees would lose their jobs in Redmond, Bellevue, and Issaquah.
Microsoft claims it is committed to the industrial metaverse
A spokesperson for Microsoft responded to a request to comment. She said: “While we can’t comment on specific staffing details but Microsoft remains committed to the industrial metaverse. We will continue to support our customers in the same way we have always supported them. We look forward to sharing more information in the future.
Srinivasamurthy says that metaverse technology adoption is still in its infancy, even though many tech companies like Microsoft jumped on board after Facebook changed its name to Meta in Oct 2021.
