Microsoft Announces Job Cuts in Azure Cloud Unit and Mixed Reality Team

Microsoft is streamlining its workforce, with plans to reduce staff in specific divisions. The cuts will primarily impact the Azure for Operators and Mission Engineering teams, both part of the Strategic Missions and Technologies (SMT) organization. Established in 2021, SMT focuses on advanced projects like quantum computing and space exploration.

Additional Teams Affected

Reports also suggest significant job reductions within the mixed reality team responsible for products like the HoloLens 2 augmented reality headset.

Microsoft’s Official Response

Microsoft acknowledges the workforce adjustments as a necessary step for effective business management. A spokesperson emphasized the company’s commitment to prioritizing investments in strategic growth areas that benefit customers and partners. This commitment extends to ongoing projects, including the U.S. Department of Defense’s Integrated Visual Augmentation System (IVAS) program. Microsoft will continue to support military personnel with advanced technology and fulfill its obligations to the IVAS program, despite the layoffs within the mixed reality team.

Industry-Wide Trend

Microsoft’s workforce adjustments reflect a broader trend within the tech and media sectors. This year has seen numerous companies announce job cuts, including Microsoft’s earlier reduction of 1,900 employees from Activision Blizzard and Xbox units. Similar actions by Amazon.com and Salesforce highlight a shift in focus towards artificial intelligence and addressing economic challenges like inflation.