Microsoft's HoloLens, Surface, Xbox Face The Brunt Of Downsizing

On implementing the layoff of 10,000 workers announced last month, Microsoft Corp (NASDAQ:MSFT) reportedly slashed jobs in units including Surface devices, HoloLens mixed reality hardware, and Xbox.
Microsoft's downsizing of the HoloLens hardware team raised speculation about whether the company will produce a third iteration of the goggles outside of a planned version for the U.S. Army, Bloomberg reports.
At the Xbox gaming unit, reductions came in marketing and the Xbox Gaming Ecosystem Group.
Microsoft said it remained committed to the mixed reality space and the current HoloLens 2 version.
Microsoft fired 617 workers in the Seattle area.
In January, the downsizing hit the video-game studio that makes Microsoft's Halo games and other workers in the mixed reality group, including some of the team working on the version of HoloLens for the U.S. Army.
The Congress' rejection of the Army's request for $400 million to buy up to 6,900 combat goggles cast doubts over the prospects of the HoloLens hardware business'.
Price Action: MSFT shares traded lower by 1.22% at $260.41 in the premarket on the last check Friday.