Microsoft announces layoffs across various cloud units

Microsoft made headlines in January of last year when it announced the layoff of 10,000 employees. Since then, the company has initiated various smaller rounds of layoffs, with the most recent one occurring in May of this year. Now, under the leadership of Satya Nadella, the tech giant has announced yet another round of layoffs, reportedly impacting around 1,000 employees across various departments, including its mixed reality division and the Azure cloud unit. 

One of the most affected areas is the mixed reality department, which contributes to the development of the HoloLens 2 augmented reality headset. Despite these reductions, Microsoft plans to continue selling the HoloLens 2 and supporting its existing customers and partners. The company also remains committed to the Department of Defense’s Integrated Visual Augmentation System (IVAS) program, which utilizes a modified version of the HoloLens.

In addition to the mixed reality division, significant layoffs are also affecting the Azure cloud unit. However, despite these layoffs, Microsoft’s Azure cloud unit is set to grow, driven by substantial investments in artificial intelligence (AI) and its partnership with OpenAI, the creator of ChatGPT.