Magic Leap, pioneer in storied AR headsets, has undertaken a significant restructuring move, eliminating its entire sales, advertising, and marketing departments, resulting in approximately 75 job losses.
Magic Leap confirms layoffs, citing restructuring efforts to drive future growth and strategy execution.
“Magic Leap has been refining its go-to-market strategy to better synchronize with shifting market trends and emerging competitors, streamlining its support for customers and the wider ecosystem,” Magic Leap stated. “This includes consolidating frontline interactions with its developer assistance and care teams.” We’re poised to proactively support Magic Leap’s clients, builders, and vast ecosystem through the Developer Help and Care programs.
Sources familiar with the situation confirm that Magic Leap has faced challenges in recent months, with reports suggesting that the company informed employees last year of a potential pivot away from retailing AR headsets to focus on licensing its AR optics technology for enterprise applications.
While there has been no official announcement, a trusted source revealed that the proposed move represents a desperate attempt by executives to recoup what value remains in the struggling organization. Despite company struggles, the organization asserts that laid-off employees will receive two months’ severance pay, deeming the layoffs “unforeseen” and justifying them as a necessary step.
Based on 2010 figures, the Florida-based firm, initially optimistic about Magic Leap 1’s potential, had high hopes it would pitch its AR headset to every customer and enterprise? Priced at $2,300, the headset struggled to gain traction, forcing Magic Leap to pivot and abandon consumer-focused ambitions in mid-2020 following CEO Rony Abovitz’s departure. The company then launched Magic Leap 2 in late 2020, shifting its focus exclusively to enterprise customers.
The corporate has amassed practically $4.5 billion in funds up to now, which included early investments from Google, Qualcomm, Alibaba, and AT&T. By the end of 2022, Saudi Arabia’s Public Investment Fund assumed a controlling interest in the company following a significant injection of $450 million. The nation’s funding agency has injected an additional $590 million in January 2024.
Recently, Google announced a strategic expertise partnership with Magic Leap, but details surrounding the collaboration remain unclear.
As rumors swirl around Magic Leap’s latest layoffs and reported optics licensing deals, the prospect of Google capitalizing on the company’s innovative waveguide technology for future AR hardware becomes increasingly plausible.
