Bloomberg reported that the US Senate Appropriations Defense Subcommittee cut around $350 million USD from the Army’s $400 million procurement request in August.
The Subcommittee added that it remained “concerned” the IVAS headsets faced “software, hardware and user-acceptance challenges.” It claims the Army had not “sufficiently addressed” the issues.
Subcommittee members approved the US Army’s move to extend testing for ten months to “engage with non-traditional defense contractors” to meet “warfighter requirements.”
Further headaches arrived after Microsoft slashed the number of staff working on the project, namely after it faced huge cuts across its mixed reality departments.
A second Bloomberg report found that Microsoft aimed to eliminate 10,000 jobs and numerous hardware projects by late March. Anonymous sources in the report confirmed Microsoft Chief Executive Satya Nadella’s move to launch changes to the company’s hardware portfolio, including the IVAS headset.