Microsoft Live Labs, the teams that brought us many exciting new technologies such as Photosynth, Seadragon (DeepZoom), Deepfish, Listas, Volta, Thumbtack and many more, had recently underwent a major re-organisation. Contrary to recent rumours, Microsoft Live Labs is not shutting down. Here’s what the team have to say on their blog:

We’ve recently made some changes to our organization, and a number of teams from within the lab will be joining product groups around the company. For instance, the Social Streams team will be joining MSN. Some of our engineers will be helping out with the next generation of Windows Mobile. And others are off to Live Search and Microsoft Advertising. The rest of us will continue our work on building new web experiences, as we always have. But moving great people and projects into the the product groups has always been part of our process, so today’s news is entirely consistent with what we’ve always done.

In the coming weeks and months we’ll bring you updated developer tools, new ways to use Seadragon, and much more. Going forward, we intend to focus on a smaller number of projects relative to what we’ve done in the past, but invest in them at a much bigger scale. So to be clear, our most ambitious and exciting projects are yet to come. Stay tuned.

The recent release of DeepZoomPix was one of the “new ways to use Seadragon”. Expect much more exciting new projects from the team, and stay tuned at LiveSide for the latest news!