Microsoft could kill HoloLens 2 support with 1,000 layoffs and an Azure strategy shift.
Corporate AI development could stifle Microsoft’s cloud development with 500 more layoffs.
Microsoft unveiled its new laptops a few days ago, emphasising Copilot+’s artificial intelligence. Microsoft also hinted at its new company direction at that event.
Microsoft sources confirmed new layoffs to reorganise the mixed reality divisions that developed HoloLens 2 and Azure cloud software a few hours ago, according to The Verge.
Microsoft will cut 10,000 jobs in 2023 and 2024. In 2023, Satya Nadella’s company laid off 5% of its workforce and more than 10,000 more in the middle of the year. The argument was to cut costs and streamline operations. Similar to Google or Meta’s claims.
The layoffs will reorganise Microsoft’s HoloLens 2 development departments and affect its moonshot specialists, who develop quantum computing and space technology applications in Azure, report Business Insider.
MS Strategic Reorganisation. Microsoft spokesperson Craig Cincotta told The Verge of new layoffs. Microsoft restructured its mixed reality organisation today. We are committed to the Department of Defence IVAS program and will continue to provide cutting-edge technology to warfighters.
In addition, we will invest in W365 to expand the mixed reality hardware ecosystem. We’ll keep selling HoloLens 2 and supporting customers and partners.”
With over 1,000 job cuts, CNBC sources said Microsoft’s mixed reality division would suffer the most. While the Operators and Mission Engineering departments innovated and developed Azure solutions for communication and spatial data processing, several hundred employees were laid off. Around 1,500 layoffs are expected between the two divisions.
Long OpenAI shadow. Microsoft’s latest product presentation highlighted the strategic importance of the Microsoft-OpenAI partnership in consumer devices and future Windows versions.
This repositioning to emphasise AI in enterprise settings may be pushing Microsoft’s cloud aside to focus on corporate AI functions.
“Our business requires regular organisational and workforce changes. Our future and customers and partners will be supported by prioritising and investing in strategic growth areas “Cincotta stated.
A weak OpenAI benefits Microsoft at Xataka. The issue is that it needs it strong.
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