Microsoft told CNBC layoffs loom in its mixed reality division, though offered assurances the move will not impact its participation in the AR device sector through its HoloLens 2 headset.
The software giant told the news outlet it plans to continue driving into the consumer and military AR markets with HoloLens 2, a device CNBC noted had not provided fruitful sales in the former segment but which helped Microsoft win a lucrative contract with the US Department of Defence.
CNBC wrote an external source pegged the number of layoffs at 1,000.
Business Insider reported the company is also preparing to axe staff in its Azure for Operators business, although it is not clear how many employees in that division will be hit.
The moves mark the latest in a series of adjustments Microsoft has made over the past near 18 months, with reports in early 2023 it was set to axe 5 per cent of its total staff and its ethical AI team also emerging as a target.
Microsoft is making a major play around AI which paid off in its fiscal Q3 2024 (the three months to end-March) when it credited its cloud and Copilot offerings for driving a 17 per cent year-on-year rise in overall revenue to $61.9 billion.
The company is gearing up for the launch of the first Copilot+-powered laptops by OEMs later this month.
The post Microsoft backs HoloLens as it readies cuts appeared first on Mobile World Live.
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