Microsoft confirms mixed reality layoffs, will keep selling HoloLens 2

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confirms mixed reality layoffs, will keep selling HoloLens 2

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CEO Satya Nadella speaks at a media briefing at the company’s campus in Redmond, Washington, on May 20, 2024.

Chona Kasinger | Bloomberg | Getty Images

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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,

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plans to continue selling the device.

The reduction comes a year after the software maker said it would make changes to its hardware lineup as part of a round of layoffs that hit 10,000 employees, including some in mixed reality. In the following months,

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discontinued several keyboard models, causing frustration for some dedicated customers.

“Earlier today we announced a restructuring of the

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’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.”

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has not found great success with the HoloLens since its introduction in 2015. But the U.S. Defense Department gave a contract to the company for a modified HoloLens named the Integrated Visual Augmentation System. Soldiers who used the devices, however, reported dealing with nausea and other conditions,

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reported. Tests suggested that an updated model looked promising.

Since then,

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and its highly valued technology peers have poured billions into commercializing artificial intelligence.

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has raced to deploy Nvidia graphics processing units so people can use a Copilot chatbot and

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-backed OpenAI’s popular ChatGPT. Premium AI features in

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365 productivity applications can write memos, draft presentations and summarize meetings.

In December,

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further reduced investment in augmented reality and virtual reality, which blocks out the surrounding world, when it

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Windows Mixed Reality, which included tools for running applications in head-mounted displays.

The spokesperson said

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will keep selling the HoloLens 2 headset that was released in 2019 but did not indicate that a new model would be coming.

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reported in 2022 that the company had canceled a third version.

Apple brought out its own augmented reality headset, the Vision Pro, in January.

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continues to support a feature called Mesh that lets people in headsets participate in three-dimensional Teams video calls with colleagues. At the

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Ignite conference in Seattle in November, CEO Satya Nadella said the company was “reimagining the way employees come together and connect using any device, whether it’s their PC, HoloLens, or Meta Quest.”

WATCH: The headset wars: How Apple Vision Pro stacks up against competition

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Meta Platforms Inc,

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,NVIDIA Corp,

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#confirms #mixed #reality #layoffs #selling #HoloLens

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