Microsoft confirms layoffs in mixed reality but will keep selling HoloLens 2 headsets

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Microsoft is investing billions to put in place graphics processing units for generative artificial intelligence. It’s slowing investment in other areas.

Microsoft will lay off some employees who work on mixed reality, which includes virtual reality and augmented reality.will lay off some employees who work on mixed reality, a spokesperson told CNBC on Monday. Although the cuts will affect the department that contributes to the HoloLens 2 augmented reality headset, Microsoft plans to continue selling the device.

"Earlier today we announced a restructuring of the Microsoft's Mixed Reality organization," the spokesperson said in an email."We remain fully committed to the Department of Defense's IVAS program and will continue to deliver cutting edge technology to support our soldiers. In addition, 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.

In December, Microsoft further reduced investment in augmented reality and virtual reality, which blocks out the surrounding world, when itSandy Hook families ask bankruptcy judge to liquidate Alex Jones' media company The spokesperson said Microsoft will keep selling the HoloLens 2 headset that was released in 2019 but did not indicate that a new model would be coming.Microsoft continues to support a feature called Mesh that lets people in headsets participate in three-dimensional Teams video calls with colleagues.

 

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