Microsoft’s recent layoffs have drastically impacted its AR, VR and Mixed Reality teams – and the company’s AR, VR and Mixed Reality teams have been able to make a significant impact.

Last week Microsoft made the announcement that it was cutting thousands of jobs, leaving many people without a future at the massive technology company and affecting virtually every aspect of the organization, whether it was Xbox and Xbox Games Studios, or even some of its more prototype tech divisions.

As recently reported by Jez Corden of Windows Centrals, these layoffs have had a major impact on Microsoft’s augmented reality, virtual reality and mixed reality plans, as entire teams in these areas have been cut.

It is said that the entire team of the recently acquired AltSpaceVR company has been released from Microsoft, meaning that this company itself will be shut down starting in March and its work on metaverse and VR will be shut down for good.

To add to this, the HoloLens team is also said to have faced major cutbacks, as Microsoft is seemingly beginning to put some distance between itself and the project, following a lack of success that reportedly saw the U.S. military reduce its contract with Microsoft over HoloLens.

Given that we are seeing Apple also taking new positions on the AR, VR and Mixed Reality space, in addition to Google and Meta both also cutting thousands of jobs, one has to wonder what the future holds for these technology types.