Microsoft is planning to close a Portland-area office focused mainly on developing the Surface Hub, according to an email obtained by the Puget Sound Business Journal. According to the report, the closure will also involve 124 layoffs.

Microsoft planning to close Surface-focused office near Portland

The email itself provides notice of 61 layoffs intended to take place at a Microsoft facility located in Wilsonville, Oregon, a Portland suburb. "Microsoft has provided all 61affected employees with Worker Adjustment and Retraining Notifications. All affected employees will be terminated on September 8, 2017," the email states. Further positions are expected to be eliminated by November 6, and all affected employees will be "terminated on January 5," the email goes on to state.

According to the Puget Sound Business Journal, the office in question is focused mostly on the development of Surface devices and specifically the Surface Hub for business. This shouldn't be taken as a sign that Microsoft is somehow cutting back on Surface development. The closure is part of a reorganization and restructuring of operations, according to the obtained email. The likeliest scenario is that Microsoft is consolidating its efforts at its main campus where most development takes place.

Surface Hub has evidently been selling well as Microsoft last stated demand was "exceeding" expectations back in December.

Update 7/11: The original technology which the Surface Hub was based on - Perceptive Pixel, which Microsoft acquired - was still based at this Wilsonville site. Many of that team have now left Microsoft, or been integrated into the Redmond campus, which puts the site's closure into perspective.