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Microsoft’s HoloLens, Xbox, and Surface Divisions Hit With Layoffs

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Microsoft is in the midst of layoffs, with a picture emerging regarding which divisions are being especially hard-hit.

Microsoft announced in January that it was cutting 10,000 jobs, although the company did not provide much detail on what departments and jobs would be most impacted. According to Bloomberg, that information is starting to filter out, with employees in the HoloLens, Xbox, and Surface divisions bearing the brunt.

The HoloLens team, in particular, was especially hard-hit with much of the team let go. The HoloLens project has experienced a number of setbacks, including Congress refusing to authorize funds for the US Army to purchase more of the devices following concerns that soldiers experienced “mission-affecting physical impairments” after just a couple of hours of use.

Xbox boss Phil Spencer notified employees that some of them would also be impacted, although he did not elaborate.

“I encourage everyone to take the time and space necessary to process these changes and support your colleagues,” Spencer wrote in the email that seen by Bloomberg.

Despite the hits to the HoloLens team, Microsoft told the outlet that it remains committed to the project.

“While we don’t comment on specific staffing details, we can share there are no changes to HoloLens 2 and our commitment to mixed reality,” the company said.