Microsoft, which announced layoffs of five percent of its entire team earlier this year, hasn’t spared even its burgeoning units dedicated to virtual reality (VR) and the metaverse. The software giant has reportedly decided to leave behind two related projects – Altspacevr and the Mixed Reality Tool Kit. In the coming days, the Metaverse and VR projects that were in Microsoft’s pipeline could experience delays in development and testing. A total of 10,000 employees will be laid off as the company prioritizes cost cutting amid ongoing market turmoil.
With altspacevr, Microsoft created virtual environments to serve as venues for digital events for international artists. It was an independent platform acquired by Microsoft in 2017. Downsizing within the tech giant has impacted this team.
Meanwhile, the unit behind the Mixed Reality Tool Kit focused on creating user interfaces for Metaverse Projects. The roadmap for the future of this division remains undecided for now, Bitcoin.news reported.
Based in Redmond, Washington, USA, the company has accelerated its efforts to enter the Metaverse market. From incorporating former Apple and Meta employees, Microsoft has gotten involved AR and VR developers in general.
CEO of the company Satya Nadella has also previously advocated the Metaverse concept, calling it a game changer.
The Metaverse is here, changing not only how we see the world, but how we participate in it—from the factory floor to the boardroom. Just look. pic.twitter.com/h5tsdYMXRD
— Satya Nadella (@satyanadella) November 2, 2021
Microsoft used to have Pledged $69 billion (approx. Rs. 5,62,574 crore) in deposit for the Metaverse sector.
His decision to reduce his workforce on that front could be contributing to the company’s ongoing slump Web3 industry even.
before microsoft, Meta also announced that it would lay off 11,000 employees, including employees from its own metaverse-related teams. A significant portion of the developers from the Metaverse sector stayed in Lerch.
For Advertisers and Brandswho expect to use Metaverse technology to connect with their native Web3 customers, these layoffs could spur implementation of their plans.
According to reports from Bloomberg Intelligence expected the market opportunity for the Metaverse is projected to reach US$800 billion (approx. Rs.59.58.719 billion) by 2024.
