TechFlash reports that Microsoft cut in half its Live Labs applied research group and shifted half of its employees to other product groups. The remaining Live Labs groups are to focus work on Internet search technologies and other Web interaction type developments.
Executives at Microsoft often cited the Live Labs group and its work as proof that the company was on the cutting edge with its developments, says ZDNet. The company now blames the rough economy for the need to cut down the group.
The remaining Live Labs groups will continue to be lead by founder Gary Flake, while Don Lindsay, Live Labs design director, has left the company to join RIM.