That headline is confusingly worded, but Microsoft only laid off 50-75 people in one MSR location. That was far from the entire division: http://research.microsoft.com/en-us/labs/default.aspx
(This might be a different robotics team, who knows!)
That doesn't seem unfair, given the layoffs.
For what it's worth, MSR historically hasn't been beholden to find commercial applications for their work. If anything, it's usually disappointing how much really cool stuff they come up with that isn't ever productized in an accessible way.