Microsoft Layoffs Continue: Xbox, Surface, HoloLens Teams Slashed

Microsoft on Thursday cut more jobs as part of the 10,000-worker layoffs it announced last month, according to a report from Bloomberg.

The latest terminations come days after Microsoft announced ChatGPT-powered Bing and more at an in-person event.

In a notice filed with the state of Washington, Microsoft said it laid off a total of 617 employees in the Seattle area. Most of the positions eliminated belonged to the company’s HoloLens, Xbox, and Surface divisions, according to people with knowledge of the matter.

Microsoft has reportedly cut much of its HoloLens hardware team, casting doubt on the future of the company’s ambitions for mixed reality hardware and whether it will develop a third iteration of the HoloLens goggles.

While the tech giant still has HoloLens orders to fulfill for the U.S. Army, anything beyond that is uncertain at this point.

Xbox Chief Phil Spencer informed employees about the cuts in an email on Thursday, but he didn’t say which teams would be impacted. “I encourage everyone to take the time and space necessary to process these changes and support your colleagues,” Spencer wrote.

Microsoft refused to comment on the reported layoffs but told Bloomberg in an emailed statement that it remains committed to the mixed reality space and the HoloLens 2. “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.

Microsoft is far from the only tech company cutting jobs as the world grapples with economic uncertainty. Google announced last month that it would lay off 12,000 employees and started terminating employees in Canada earlier this week, while a recent report indicated that Apple is downsizing its retail operations by cutting non-seasonal employees outside of Apple Stores.

Job cuts at Microsoft are expected to continue through this quarter, ultimately eliminating 5% of the company’s workforce.

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