Microsoft reduces consumer R&D

• The company declined to comment but didn’t deny the reports of layoffs.
• According to LinkedIn posts, contractual recruiters in Chicago were also laid off.
• Layoffs were concentrated at Microsoft’s MLX customer-focused R&D group.

Microsoft cut more jobs this week after reducing its Office and Windows workforces in July. This round of layoffs was concentrated at MLX, a customer-focused R&D group. According to LinkedIn posts, contractual recruiters in Chicago were also laid off.

Unknown number of employees were fired. Microsoft declined to comment but didn’t deny layoffs.

Microsoft’s MLX business was formed after the company’s 2015 acquisition of Mobile Data Labs, maker of the popular mileage-tracking app MileIQ. After several years refining MileIQ within Microsoft, the team partnered with Microsoft’s Family Safety group to produce iOS and Android apps.

Eran Megiddo, CVP of Windows Product and Education, now heads MLX and Microsoft’s Education group. Former Mobile Data Labs CTO Max Wheeler is a director of engineering at Microsoft.

MLX announced Money in Excel in June 2020, a template that automatically connects bank, credit card, investment, and loan accounts to Excel for individual insights. (A support article says Money in Excel will close on June 30, 2023.) According to a job posting, the team also created “creative new customer experiences” for Windows, Xbox, mobile, and the web.

MLX was part of Microsoft’s drive to win back customers by focusing on “prosumer” products and services, particularly family-oriented services. Microsoft presented a “Kids Mode” for Edge, consumer-focused Teams capabilities, and personal Microsoft 365 subscriptions. Modern Life Planning was tasked with expanding the consumer company through price, strategy, partnerships, and acquisitions.

Uncertain if MLX group layoffs signify a strategy shift. Despite dropping consumer demand and PC production slowdowns, Microsoft didn’t meet expectations in its most recent fiscal quarter.

Microsoft CFO Amy Hood said in July that the business will invest in future growth while preserving operational excellence and execution rigour.

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