Magic Leap cuts 75 jobs as it shifts focus to technology licensing in AR headsets
Magic Leap, a US-based augmented reality (AR) startup, has made headlines with reports of cutting around 75 roles, affecting its entire sales and marketing departments. The decision to lay off employees comes as Magic Leap aims to navigate the evolving augmented reality market and capitalize on emerging business opportunities.
A spokesperson from Magic Leap stated that the layoffs are part of a strategic adjustment aimed at aligning more closely with current market dynamics and potential new opportunities. The company has consolidated its frontline engagement to the existing developer support and care teams, ensuring continued support for customers, developers, and the ecosystem.
Employees affected by the layoffs are being offered two months of severance pay, with the condition of signing non-disclosure agreements. Sources indicate that the job cuts were unexpected and have added to the uncertainty that has been present for several months.
Founded in 2010, Magic Leap initially focused on creating an augmented reality headset for the consumer market. However, its first product launch in 2018 did not meet expectations, leading the company to shift its focus to business applications. The recent layoffs are part of another pivot towards technology licensing, particularly concerning the company’s optics technology used in AR headsets.
Earlier this year, Magic Leap informed its employees of a reorganization that would de-emphasize direct sales of its headsets to business clients in favor of licensing its optics technology. The company had previously reduced its workforce by about 1,000 workers, or half of its staff, in 2020. The current number of employees at the company remains undisclosed.
The direction of Magic Leap has become increasingly uncertain, with sources indicating a shift towards technology licensing as the company navigates the competitive AR market. Stay tuned for more updates on Magic Leap and its strategic moves in the tech industry.
