The layoffs announced by Microsoft and Google parent Alphabetat the end of last week, which will affect 10,000 and 12,000 employees respectively, will occur, according to its managers, in practically all areas and divisions of the companies. But as usually happens in these cases, some divisions will be much more affected than others. Some are even going to disappear.
In the case of Microsoft, it may even lead to the freezing projects related to HoloLens and with those based on this virtual reality helmet. According to Apple Insider, teams working in both virtual and mixed reality at Microsoft have been hit hard by the layoffs. Also, according to a blog post from the AltSpaceVR team, the platform is going to shut down next March.
Its closure, after Microsoft bought the company in 2017, occurs because those from Redmond have fired all the staff that worked for it. AltSpaceVR was currently leading the company’s work on its own metaverse, hinting that its development at Microsoft is in for a major slowdown, if not a complete freeze.
Another of the teams that has been most affected by the layoffs is the one that works on the development of the Microsoft Mixed Reality Toolkit (MRTK) framework, a system for several platforms, whose purpose is the production of spatial anchors in virtual spaces. This framework had achieved several successes, such as its development for integrations with Unity VR and its compatibility with the cases developed by Meta, as well as with Micr0soft’s HoloLens.
As pointed out by Bloomberg, the layoffs are going to spread also to its video game division, and it will even affect the development teams of Starfield and Halo. Apparently, as confirmed by Game Studios, developer of the next Starfield; and from Halo Infinite developer 343 Industries, some of those laid off were veterans who had been working for Xbox for more than a decade. Apparently, they will also affect certain areas of engineering, but so far no more areas have been severely affected by the workforce cuts.
As for Alphabet, according to The Information, in the Google parent company they have even fired employees who had stood out in previous reports for their high performance. Also to managers with annual compensation packages of between half a million and one million dollars. layoffs are distributed across the organization, from Google Cloud to Chrome and Android. They have also affected groups working on search-related projects.
Apparently, one of Google’s most affected divisions so far is the one known as Area 120, according to Bloomberg, which notes that it has been left with fewer than 100 employees after this round of layoffs. This is the company’s internal incubator, which is responsible for working on various apps and products.
Sundar Pichai opened it in 2016 for «provide a purpose-built foundation for innovating from the ground up at Google«. From Alphabet they have confirmed that they have made the decision to fire the majority of the team. Apparently the division usually works on about 20 projects at the same time, but this year they’re only going to become part of Google later this year. Almost everyone who doesn’t work for them has been laid off.
Google Cloud has laid off employees in the areas of strategy, recruiting, and the “go-to-market” teams that provide data, training, and research for future deals to sales departments. The sales department has also been affected in different locations. One of them is Austin (Texas). There have also been layoffs in the areas of engineering, developer relations, and community.
The layoffs in the US would have already taken place, but those that the company is going to undertake in Africa, Europe and the Middle East could take months to occur, according to Business Insider. Apparently, in many cases this is due to the fact that the company has to comply with the current legislation on dismissals in the different countries in which it has a presence. In addition, the cuts in them would still be decided, both in the number of dismissed and in the affected areas.
