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Microsoft is laying off about 1,000 employees in its Azure Cloud and mixed-reality businesses, a source told CNBC.
The job cuts will affect roles in Azure for Operators and Mission Engineering. Microsoft is also restructuring its mixed-reality division but will continue to sell the HoloLens 2, its mixed-reality headset.
The HoloLens 2 is crucial for Microsoft's Integrated Visual Augmentation System (IVAS) program with the Pentagon, which the company remains fully committed to.
In January, Microsoft cut 1,900 jobs across its Activision Blizzard, Xbox, and ZeniMax teams. These layoffs came three months after Microsoft completed its $69 billion acquisition of Activision Blizzard.
