Magic Leap announces layoffs and shift toward commercial uses
Magic Leap, the Broward-based tech firm that has raised more than $2 billion, announced an unspecified number of layoffs Wednesday and said that the company would now focus more squarely on commercial uses of its augmented reality product.
In a note posted on the company’s website Wednesday, founder and CEO Rony Abovitz said the economic changes brought by coronavirus made the moves necessary.
“To better prepare Magic Leap for the future, we have taken a close look at our business and are making targeted changes to how we operate and manage costs. This has made it necessary for us to make the incredibly difficult decision to lay off a number of employees across Magic Leap,” he wrote.
He added that the company was now pivoting the focus of its resources toward business-oriented uses of its technology—a software platform that includes a headset that creates virtual images in a user’s field of vision.
“The recent changes to the economic environment have decreased availability of capital and the appetite for longer term investments,” he said. “While our leadership team, board, and investors still believe in the long-term potential of our IP, the near-term revenue opportunities are currently concentrated on the enterprise side.”
Magic Leap’s investors have included Google, AT&T, and Saudi Arabia’s sovereign investment fund.
A representative for Magic Leap did not immediately respond to comment.
