Business News Report
January 24, 2023

Microsoft lays off staff related to VR projects and shuts down AltspaceVR

In Brief

Microsoft lays off a big part of its VR, XR, and Hololens employees.

The tech company also shuts down its social VR platform AltspaceVR, but it’s still bullish on Microsoft Mesh.

Microsoft lays off staff related to VR projects and shuts down AltspaceVR
Image by efes from Pixabay

While tech giants like Apple and Meta are attempting to expand in the metaverse, Microsoft is laying off its mixed reality staff and closing down AltspaceVR. 

SEC filings indicate that the American tech corporation is shifting its business focus and will fire over 10,000 employees, which amount to around 5% of its global workforce. The layoffs could indefinitely pause Microsoft’s Hololens and headset-related projects.

Last Friday, AltspaceVR, a VR company acquired by Microsoft in 2017, announced it would be shutting down on March 10. The Altspace team wrote that the company pivots its business “to support immersive experiences powered by Microsoft Mesh.”

Microsoft also laid off the entire team responsible for its “Mixed Reality Tool Kit” (MRTK) group, an open-source mixed reality framework for Unity. The release of a new version of MRTK was planned for next month, but it has been canceled.

Microsoft’s decision to disband its VR and MRTK teams suggests that the company might not have a strong belief in the potential of the metaverse. However, the company is putting effort into Mesh, the apparently most important VR project for Microsoft.

Last October, the tech company introduced custom avatars and AI features to the video conference app “Teams.” The announcement is a part of the Microsoft Mesh initiative, a mixed-reality platform that allows users to interact with each other and their surroundings in a shared virtual environment.

Microsoft has also recently extended its partnership with OpenAI, the creator of ChatGPT.

Tags:

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

More articles
Agne Cimerman
Agne Cimerman

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

Hot Stories
Join Our Newsletter.
Latest News

Is Europe’s Banking System Ready For Stablecoins? I Went To Barcelona To Find Out

At EBC Barcelona, banks said euro stablecoins await custody and capital rules — while payment firms and ...

Know More

Shufti, Jumio, Sumsub, And Beyond: Top 6 Identity Verification And Compliance Platforms To Know In 2026

Shufti, Sumsub, Incode, Veriff, Persona and Jumio compared on compliance lifecycle coverage, pricing transparency and fraud detection ...

Know More
Read More
Read more
Bitget Launches Open Custody Network, Giving Institutions Choice In Custody and Access To Markets
News Report Technology
Bitget Launches Open Custody Network, Giving Institutions Choice In Custody and Access To Markets
October 16, 2026
Gate Update: Gate Money Strategy, Stock-Futures Gains and Stablecoin Push Define Exchange’s Week
Digest News Report Technology
Gate Update: Gate Money Strategy, Stock-Futures Gains and Stablecoin Push Define Exchange’s Week
October 16, 2026
OpenAI Report: Internal Research Model Spent Funds From Unauthorized Testnet Wallet To Deploy Smart Contracts
News Report Technology
OpenAI Report: Internal Research Model Spent Funds From Unauthorized Testnet Wallet To Deploy Smart Contracts
October 16, 2026
October’s 2nd Week In Crypto: Ripple, Gate And Orbi Announce New Partnerships
News Report Technology
October’s 2nd Week In Crypto: Ripple, Gate And Orbi Announce New Partnerships
October 16, 2026