The tech industry is reeling as layoffs continue to rise. According to reports, the current round of layoffs at Microsoft, which revealed 10,000 job cuts this year alone, accounting for 5% of Microsoft’s global workforce, has targeted critical teams for its VR (virtual reality) and metaverse operations.
The business will close two initiatives in these areas, AltspaceVR and the Mixed Reality Tool Kit, which may have an impact on Microsoft’s progress in these sectors, a huge bummer.
AltspaceVR, which was acquired by Microsoft in 2017, has previously declared that its platform will be retired on March 10.
The platform, which was designed to ease the construction of virtual environments for events involving artists, producers, brands, and businesses, will be migrated to Mesh, a more work-focused platform that integrates with Microsoft Teams.
The Mixed Reality Tool Kit, an open-source collection of tools for creating user interfaces for the metaverse, will likewise presumably be dropped, given no new teams committed to its development have been announced as of recently.
Whereas the firm explained the layoffs as a cost-cutting move to balance its cost structure with revenue and consumer demand, some argue that the company’s progress in the metaverse and VR industry has slowed.
Microsoft’s rumored layoffs mostly affect consumer metaverse activities, mirroring Meta’s decision to lay off 13% of its workers, resulting in the loss of 11,000 jobs.
Meanwhile, Microsoft’s upper management believes in the metaverse and other innovative technologies, as well as the advances they will bring in the future.
Satya Nadella, the company’s CEO, recently remarked that the sense of presence that metaverse technology can provide is game-changing.
Microsoft is also participating in the building of the World Economic Forum’s (WEF) metaverse world, the Global Collaboration Village, and has expressed interest in investing in AI (artificial intelligence) projects such as Openai, the inventors of the AI bot Chatgpt.
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