On Monday, Microsoft announced layoffs reportedly affecting around 1,000 employees. As reported previously by CNBC, the mixed reality department working on HoloLens 2 is one of the areas affected. Separately, Business Insider reported that Azure for Operators and Mission Engineering has also seen cuts of “hundreds” of employees.

Microsoft spokesperson Craig Cincotta said in a statement emailed to The Verge, “Earlier today, we announced a restructuring of Microsoft’s Mixed Reality organization. We remain fully committed to the Department of Defense’s IVAS program and will continue to deliver cutting-edge technology to support our soldiers. In addition, we will continue to invest in W365 to reach the broader Mixed Reality hardware ecosystem. We will continue to sell HoloLens 2 while supporting existing HoloLens 2 customers and partners.”

“Organizational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners,” said Cincotta.