Magic Leap lays off employees and puts focus on enterprise

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Chief executive officer Rony Abovitz said in a statement that the company had taken the ‘incredibly difficult decision to lay off a number of employees across Magic Leap’

Quick read

Bloomberg reported that the move will affect about 1,000 people
➨ CEO Abovitz said that the economic impact of the pandemic has decreased available capital and appetite for long-term investments
➨ He also confirmed Magic Leap’s intention to abandon its aim to dominate the at-home consumer AR market

The story

Magic Leap is laying off a portion of its workforce in the wake of the coronavirus pandemic, as the spatial computing company restructures and completes its pivot toward the enterprise market.

Chief executive officer Rony Abovitz said in a statement that the company had taken the “incredibly difficult decision to lay off a number of employees across Magic Leap”. Bloomberg reported that the move will affect about 1,000 people.

Abovitz said: “This has been a painful process, as every member of our Magic Leap team has demonstrated not only unparalleled talent but a true passion for our company’s mission. But after lengthy, careful consideration, I have determined this is ultimately necessary to give us the best chance for future success. These changes will occur at every level of our company, from my direct reports to our factory employees.”

Magic Leap is the first high-profile immersive technology company to lay off staff in the current climate. Abovitz said that the economic impact of the pandemic has decreased available capital and appetite for long-term investments.

Confirming Magic Leap’s intention to abandon its aim to dominate the at-home consumer AR market, Abovitz said that “near-term revenue opportunities are currently concentrated on the enterprise side”.

He continued: “Adapting our company to these new market realities and our increased focus on enterprise means we must align our efforts to focus on the areas of our business that advance our technology, ensure delivery of Magic Leap 2, and expand product-market fit and revenue generation.”

“This transformation also means that we must decrease investments in areas where the market has been slower to develop, providing us with a longer runway while retaining the ability to explore and build on future use cases when the market signals readiness.”

Magic Leap’s moves in the enterprise market so far have seen it team up with Spatial to launch a new collaboration package and reposition and rename Magic Leap 1.

Image: The recently rebranded Magic Leap 1 headset
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