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Microsoft confirms layoffs in mixed reality but will keep selling HoloLens 2 headsets

Microsoft is investing billions to put in place graphics processing units for generative artificial intelligence. It's slowing investment in other areas.

The reduction comes a year after the software maker said it would make changes to its hardware lineup as part of a round of layoffs that hit 10,000 employees, including some in mixed reality. Microsoft has raced to deploy Nvidia graphics processing units so people can use a Copilot chatbot and Microsoft-backed OpenAI's popular ChatGPT. At the Microsoft Ignite conference in Seattle in November, CEO Satya Nadella said the company was "reimagining the way employees come together and connect using any device, whether it's their PC, HoloLens, or Meta Quest."

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