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.

In a statement to CNBC, Microsoft said, “We remain fully committed to the Department of Defense’s IVAS program and will continue to deliver cutting edge technology to support our soldiers,” and that it will continue to sell HoloLens 2.