Microsoft layoff employees from Xbox and mixed reality unit

Microsoft announced plans to lay off about 10,000 employees worldwide last month. Although the layoff process began shortly after the announcement, many still receive letters about their future at the company. As per Bloomberg, the Redmond, Washington-based company is now targeting hardware divisions such as the HoloLens, Surface, and Xbox divisions. About 617 workers in Seattle will be affected, the report suggests. LinkedIn posts suggest that some employees in these divisions have begun receiving termination letters.

The report highlights that work outages on HoloLens raise questions about the future of the third-generation HoloLens mixed reality headset. In early January, the US Congress rejected the military's request for $400 million to buy up to 6,900 Microsoft HoloLens combat goggles. The report also mentions a spokesperson who confirmed the layoffs. The spokesperson clarified the future of HoloLens, saying, "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."

Kristian Davila, a former HoloLens employee, took to LinkedIn and said that many coworkers had lost their jobs recently. The post says, "My role, along with the roles of many of my amazingly talented colleagues, was eliminated today. I'm still trying to process things, and part of my process is to look back on the experiences that I've had during my time on this team."

Another employee, Sophie Stellmach, chief science and interaction design officer, announced that she, too, is part of the current round of layoffs at Microsoft divisions.

Meanwhile, Xbox boss Phil Spencer reportedly sent an email to employees to inform them of the changes in the division. The email, reviewed by Bloomberg, reads: "I encourage everyone to take the time and space necessary to process these changes and support your colleagues."

Microsoft, while announcing layoffs last month, said the reductions would continue through the end of the third quarter of fiscal 23. The company has said, "The senior leadership team and I are committed that as we go through this process, we will do so in the most thoughtful and transparent way possible."

Microsoft has said it will continue to invest in strategic areas and allocate "capital and talent to areas of secular growth."