Magic Leap Lays Off Sales and Marketing Teams, Shifts Focus to Developer Support and Optics Licensing

Magic Leap, the storied AR headset unicorn, has made a significant move by laying off its entire sales and marketing departments, resulting in around 75 job cuts. This decision comes as the company looks to adjust its strategy and focus on emerging opportunities in the market.

According to a report by Bloomberg, Magic Leap has been facing challenges in recent months and has allegedly informed employees of a shift from selling AR headsets to enterprise and potentially licensing its AR optics technology. This move is seen as a last-ditch effort by leadership to salvage the company’s remaining value.

Founded in 2010, Magic Leap initially aimed to target both consumers and enterprise with its Magic Leap 1 headset. However, after struggling to gain traction in the consumer market, the company pivoted to focus solely on enterprise with the release of Magic Leap 2 in late 2020.

Despite these challenges, Magic Leap has received significant investments totaling nearly $4.5 billion from companies like Google, Qualcomm, Alibaba, and AT&T. Saudi Arabia’s Public Investment Fund became the majority stakeholder in late 2022, injecting millions of dollars into the company.

In a recent development, Google announced a strategic technology partnership with Magic Leap, hinting at potential collaborations in the AR hardware space. With Magic Leap’s recent layoffs and rumors of optics licensing, it raises speculation that Google may be looking to leverage Magic Leap’s technology in future AR products.

The future of Magic Leap remains uncertain, but with its focus on developer support and care teams, the company is committed to continuing to support its customers, developers, and ecosystem.