Microsoft Continues Job Cuts in Surface, Xbox, and HoloLens
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Microsoft eliminates jobs for Surface, Xbox, and HoloLens as layoffs continue.
Microsoft Corp implemented the layoffs of 10,000 staff announced last month on Thursday, according to people familiar with the situation. Units affected include Surface tablets, HoloLens mixed reality hardware, and Xbox.
According to the unnamed individuals who declined to be identified discussing private matters, the manufacture of a third generation of the goggles outside of a planned version for the US Army is in doubt due to cuts to a sizeable chunk of the HoloLens hardware team. Topics.
According to one of the persons, reductions in marketing and the Xbox Gaming Ecosystem Group occurred in the Xbox gaming division.
Phil Spencer, the CEO of Xbox, informed staff members via email on Thursday of the layoffs but did not specify which areas of his company were affected.
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In the email, which was seen by Bloomberg, Spencer urged everyone to "take the time and space necessary to understand these changes and support your colleagues."
Microsoft steadfastly affirmed its commitment to the mixed reality market and the current HoloLens 2 iteration while declining to comment on the cuts.
The business responded in an email that while it "doesn't comment on particular staffing specifics, we can disclose there are no changes to HoloLens 2 and our commitment to mixed reality," pointing to a blog post from last week regarding the commitment.
Microsoft announced this month that it would be laying off 10,000 employees this quarter, or around 5% of its total staff.
It took a $1.2 billion charge against earnings for the previous quarter, of which $800 million was due to job losses. The remaining amount was due to "changes to our hardware portfolio" and the price of consolidating real estate leases.
The business has not provided specifics regarding the hardware modifications or the locations of the job layoffs.
The Microsoft Halo video game studio and other mixed reality employees, including some of the team working on the HoloLens version for the US Army, were affected by reductions last month.
After the Army's request for $400 million to purchase as many as 6,900 of its combat goggles in the current fiscal year was rejected by Congress last month, Microsoft won't be receiving any additional orders for them any time soon.
The survival of the HoloLens hardware company may be in danger if the Army doesn't place a sizable order since there aren't enough crucial clients, one of the sources said.