Microsoft’s Metaverse, VR Initiatives Likely to Slow Down Amid Ongoing Layoff Season

A total of 10,000 employees are being laid off as Microsoft prioritises cost-cutting amid the ongoing market turbulence.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 24 January 2023 14:52 IST

Microsoft’s Metaverse, VR Initiatives Likely to Slow Down Amid Ongoing Layoff Season

Photo Credit: Reuters

Microsoft recently pledged $69 billion in down payment on the metaverse sector

Highlights

Microsoft is implementing cost-cutting measure
Altspacevr was acquired by Microsoft in 2017
Advertisers could have to delay metaverse promotional plans

Microsoft, that announced layoffs of five percent of its total team earlier this year, has not spared even its up-and-coming units dedicated to Virtual Reality (VR) and the metaverse. The software giant has reportedly decided to draw curtains over two related projects – Altspacevr and the Mixed Reality Tool Kit. In the days to come, the metaverse and VR projects that were in Microsoft's pipeline, could witness delays in development and testing. A total of 10,000 employees are being laid off as the company prioritises cost-cutting amid the ongoing market turbulence.

With Altspacevr, Microsoft was creating virtual environments to serve as venues for digital events for international artists. It was an independent platform, that was acquired by Microsoft in 2017. The job cuts within the tech giant has impacted this team.

Meanwhile, the unit behind the Mixed Reality Tool Kit, was focussed on creating user interfaces for metaverse projects. The roadmap to the future of this division remains undecided as for now, Bitcoin.news reported.

CoinDCX, Binance Start Crypto Awareness Programme, Web3 Scholarship

The Redmond, Washington, US-based company has been accelerating efforts to tap into the metaverse market. From roping-in former employees from Apple and Meta, Microsoft has been engaging with AR and VR developers at large.

Company CEO Satya Nadella has also previously spoken in favour of the metaverse concept, calling it a game-changer.

The metaverse is here, and it's not only transforming how we see the world but how we participate in it – from the factory floor to the meeting room. Take a look. pic.twitter.com/h5tsdYMXRD
— Satya Nadella (@satyanadella) November 2, 2021

Earlier, Microsoft had pledged $69 billion (roughly Rs. 5,62,574 crore) in down payment on the metaverse sector.

Its decision to reduce its workforce on this front could contribute to the ongoing slump in the Web3 industry as well.

Ethereum to Bring Privacy Features for Blockchain Transactions

Before Microsoft, Meta also announced that it would be laying off 11,000 employees that include staffers from its own metaverse-related teams. A substantial chunk of developers from the metaverse sector have been left in lerch.

For advertisers and brands, expecting to use the metaverse technology to engage with their Web3 native customers, these layoffs could push the implementation of their plans.

Bloomberg Intelligence reportedly expects the market opportunity for the metaverse to reach $800 billion (roughly Rs. 59,58,719 crore) by 2024.

Will crypto tax hurt the industry in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Cryptocurrency, Altspacevr, Mixed Reality Tool Kit, Job Cuts

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More