Dozens of employees accused Kipman of inappropriate behavior towards women and one instance where he allegedly watched what was described as "VR porn" in front of other employees.

There are more than 25 current and former Microsoft employees who contributed to an internal report on the matter. According to three sources, managers warned employees not to leave women alone around the area.

At the time of the report's publication, Microsoft said it was unaware of any reports regarding the virtual reality incident. The company told Insider that every reported claim is investigated and action is taken if the claim is substantiated. The group of employees shared their grievances late last year.

After promising to clean up Microsoft'stoxic workplace culture, the allegations arrived several years later. The purge of the so-called "talented jerk" was done, according to a new interview by Microsoft's chief executive. One employee told Insider that Nadella doesn't like conflict and doesn't want to hear about it.

According to Insider, Microsoft is reorganizing their division because of the resignation of the lead of Microsoft's holograms. The head of Microsoft's cloud and artificial intelligence group sent an email to employees explaining how the changes will "align and further accelerate our overall Metaverse efforts as a company."

Alex and I have been talking about the future of the team. The full text of the email was obtained by Geekwire.

The email says that the team will reorganize and that Kipman will stay for another two months. It was the right time for him to leave the company according to the email.

The group that developed the motion controller for the XBOX was led by a Microsoft employee. One of the company's top technical fellows was him. Microsoft has not commented on the departure of the public face of the project.

It is a difficult time for Microsoft and its products. Infighting among those working on the mixed reality platform has caused uncertainty about the company's future.