Microsoft’s Layoffs Continue, Impacting Surface, HoloLens, and Xbox
Microsoft Corporation has continued its implementation of the 10,000 worker layoff announced last month, cutting jobs in various units including Surface devices, HoloLens mixed reality hardware, and Xbox. The cuts to the HoloLens hardware team have raised questions about the production of a third iteration of the mixed reality goggles, with sources claiming that it may only be produced for the US Army. At the Xbox gaming unit, the reductions have affected the marketing department and the Xbox Gaming Ecosystem Group.
Xbox Chief Phil Spencer sent an email to employees on Thursday, informing them of the cuts but without specifying which parts of the business were affected. In his email, Spencer encouraged employees to take the necessary time to process the changes and support each other.
According to a notice filed with the state, 617 workers were laid off in the Seattle area.
Microsoft announced last month that it plans to cut 10,000 jobs, equivalent to 5% of its workforce, during the course of this quarter. The company took a $1.2 billion charge against earnings for last quarter, with $800 million of it related to the job cuts and the rest related to “changes to our hardware portfolio” and the cost of consolidating real estate leases. The company has not provided further details about the hardware changes or where the cuts have specifically occurred.
