Microsoft recently made the announcement regarding layoffs of 5% of its total team earlier this year. The biggest software giant, Microsoft has reportedly decided to draw curtains over two related projects – Altspacevr and the Mixed Reality Tool Kit. In future, the metaverse and VR projects that were existing in Microsoft’s pipeline might face some delays in development and testing. There are about 10,000 employees who are being laid off as the company prioritizes cost-cutting.
Along with AltspaceVR, Microsoft was making the creation of 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 occurring layoffs are impacting the entire team as a whole.
Meanwhile, the unit behind the Mixed Reality Tool Kit was focused on creating user interfaces for metaverse projects. The vision for the future of this division remains undecided for now.
The Redmond, Washington, US-based company has been accelerating efforts to get entry into the metaverse market. They are taking an initiative to recruit employees from Apple and Meta, and Microsoft has been engaging with AR and VR developers at large.
The CEO of the company, Satya Nadella has also said in favour of the metaverse concept and named it a game-changer.
Before this, Microsoft had pledged $69 billion in a down payment on the metaverse sector.
The decision is taken to reduce its workforce that will be contributed to the ongoing slump in the Web3 industry.
Before Microsoft, Meta also made the introduction of firing 11,000 employees that include staffers from its own metaverse-related teams.
For running the advertisements, it is expected to use the metaverse technology to engage with its Web3 native customers; these layoffs could push the implementation of its plans.
The market opportunity is expected to reach $800 billion (roughly Rs. 59,58,719 crore) by 2024.