Magic Leap Inc. Cuts 75 Jobs, Including Sales and Marketing Departments
Magic Leap Inc., the once-promising augmented reality startup, has hit another rough patch with the recent announcement of significant job cuts. The company let go of about 75 employees, including its entire sales and marketing departments, in a move that signals a major shift in strategy.
Once hailed as a tech unicorn with a valuation of $3.5 billion, Magic Leap has struggled to find its footing in the competitive AR market. The company’s first product launch in 2018 was a disappointment, leading to a series of pivots and reorganizations.
According to a Magic Leap spokesperson, the latest layoffs are part of a strategic realignment to better align with market trends and emerging opportunities. The company is now focusing on technology licensing and developer support, moving away from direct sales to business customers.
Despite a recent partnership announcement with Google, Magic Leap’s future remains uncertain. The company is reportedly in negotiations to license its optics technology, but it’s unclear if any deals have been finalized.
The job cuts come on the heels of a previous round of layoffs in 2020, when Magic Leap let go of about half its workforce. The company is offering two months of severance pay to affected employees, who are also required to sign non-disclosure agreements.
As Magic Leap continues to navigate its turbulent journey, industry watchers are keen to see if the company can regain its former glory or if it will fade into obscurity.
