March 29, 2024

Microsoft management fires part of the developers of the metaverse

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Microsoft management fires some metaverse developers

Microsoft is set to lay off more than 10,000 people in 2023 as part of a company reorganization. This is approximately 5% the entire workforce of the American tech giant.

Teams working on such projects will be cutprojects like Mixed Reality Tool Kit and Altspacevr. The latter's platform will be closed on March 10. Projects working on creating mixed reality tools and tools for creating APIs for the metaverse will also be closed.

Microsoft has upcoming layoffsjustified by the fact that the corporation needs to bring its cost structure in line with revenues and consumer demand. At the same time, the layoffs, according to the message, will mainly affect projects on metaverses and VR, since it is planned to continue to recruit employees to work in other key areas.

The changes will cost the company approximately $1.2 billion, which will be used to pay severance pay, purchase new equipment and related expenses. The Corporation undertakes to provide outgoing employees with health insurance for six months after dismissal.

Previously, Microsoft management spoke positively about metaverse technology, noting that it will play an important role in the development of the Internet and interaction between people.