Microsoft announced last week that it will lay off 10,000 employees, about 5% of its global workforce. As I reported, it looks like the company’s HoloLens team will be among the hardest hit by the job cuts. With Microsoft also recently laying off its entire MRTK team and shutting down AltSpaceVR, it looks like the company is changing its VR/AR and metaverse goals.

In some ways, the decision to cut jobs on HoloLens makes sense, since Microsoft is a long way from making HoloLens 3. The company recently said it won’t make HoloLens 3 until the time is right. Of course, Microsoft is in the midst of fulfilling a commitment to supply thousands of HoloLens units to the US military.

However, Congress recently blocked the purchase of 6,900 more IVAS HoloLens units from Microsoft. That…