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Microsoft lays off XR teams, seems to bet on AI

by Marco van der Hoeven

The restructuring announced by Microsoft particularly affects the teams behind AltSpaceVR and the Mixed Reality Tool Kit. According to reports in American media, these have been completely fired. For the time being, the expected AI investment of ten billion dollar in ChatGPT seems to continue.

Last week, Microsoft announced that it will cut costs by laying off several thousand employees. This should reduce the workforce by five percent. This is at the expense of AltSpaceVR, which Microsoft bought in 2017. This will close in March. Microsoft Mesh is expected to succeed AltSpaceVR. This was used last week at the WEF in Davos.

The team behind the “Mixed Reality Tool Kit” has also been fired, which worked on VR integrations with headsets from Meta, and its own HoloLens, among other things. The question is what this development means for the HoloLens, which is still negotiating a contract with the US military.

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