Microsoft is undergoing significant restructuring, with reports indicating layoffs affecting multiple departments, including those working on HoloLens 2 and Azure teams. 

According to CNBC, approximately 1,000 employees will be impacted by these layoffs. The mixed reality team responsible for HoloLens 2, along with the Azure for Operators and Mission Engineering teams, will bear the brunt of these cuts, affecting hundreds of employees. 

This latest round of layoffs follows a previous one where Microsoft let go of over 10,000 employees. CEO Satya Nadella had hinted at changes to the hardware portfolio during that time. 

Since then, Microsoft has made notable moves such as the acquisition of Activision-Blizzard, investments in artificial intelligence, and the introduction of new Surface devices featuring Qualcomm chips. 

Despite these layoffs, Microsoft has emphasised its commitment to ongoing projects, including the Department of Defense's Integrated Visual Augmentation System (IVAS) program and the continued sales of HoloLens 2. 

In a statement to CNBC, the company reiterated its dedication, stating, "We remain fully committed to the Department of Defense’s IVAS program and will continue to deliver cutting edge technology to support our soldiers." 

A Microsoft spokesperson also assured Reuters that organisational and workforce adjustments are part of managing their business and emphasized their focus on strategic growth areas for the future, as well as supporting customers and partners. 

The Azure for Operators and Mission Engineering department, established in 2021, handles crucial projects such as Azure Space, telecom initiatives, and quantum computing. Despite the layoffs, Microsoft remains dedicated to advancing its initiatives and maintaining its position as a leader in technology innovation.