Microsoft Revamps MR Unit As Key Exec Said To Step Down Over 'Toxic Behavior' Complaints

Microsoft Corporation MSFT has reportedly lost a key tech talent who was overseeing the development of the HoloLens mixed reality (MR) headset.

What Happened: Alex Kipman, who led the HoloLens project, stepped down from the company following allegations of a misdemeanor, Geekwire reported, citing Business Insider. 

The report said Kipman was an example of "toxic behavior" inside the company.

According to Business Insider, more than 25 Microsoft employees complained in an internal report that Kipman resorted to misconduct, including instances of unwanted touching and watching lewd VR videos in front of employees in the office.

Restructuring: The software giant is also restructuring the unit, the Geekwire said, citing an internal company email written by Scott Guthrie,  head of Microsoft's Cloud & AI Group.

Guthrie suggested the project will be split into the MR hardware team and MR Presence and Collaboration team, as per the report.

Why It Matters: Microsoft is working with the U.S. Army to supply MR headsets as part of a training program called Integrated Visual Augmentation System (IVAS).

MR devices would allow army personnel to render images in low light conditions, outline objects, overlay 3D maps among other things.

The MR hardware team, including HoloLens and IVAS, will combine with the Windows + Devices organization and the MR Presence and Collaboration team will join the Teams Organization.

Related Link:  Why This Microsoft Analyst Says The Tech Stock Is A Buy Now 

Price Action: Microsoft shares ended Tuesday's session down 1.40% at $272.50, according to  Benzinga Pro data.