Magic Leap Lays Off Entire Sales and Marketing Departments, Shifts Focus to Developer Support and Care Teams
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. The company confirmed the layoffs, stating that it was part of an adjustment to its strategy moving forward.
According to a report by Bloomberg, Magic Leap has been facing challenges in recent months, with rumors circulating that the company may pivot from selling AR headsets to enterprise and focus on licensing its AR optics technology instead. This alleged shift in strategy is seen as a “last-ditch effort” by leadership to salvage the company’s value.
Founded in 2010, Magic Leap initially aimed to target both consumers and enterprise with its Magic Leap 1 headset. However, the $2,300 price tag made it difficult for the device to gain traction in the market. The company eventually pivoted to focus solely on enterprise with the release of Magic Leap 2 in late 2020.
Despite its struggles, Magic Leap has received significant funding, including investments from Google, Qualcomm, Alibaba, and AT&T. In late 2022, Saudi Arabia’s Public Investment Fund became the majority stakeholder in the company after injecting $450 million. The fund further invested $590 million in January 2024.
Recently, Google announced a “strategic technology partnership” with Magic Leap, although the details of the partnership are still unclear. With Magic Leap’s recent layoffs and potential optics licensing plans, it is speculated that Google may be looking to leverage Magic Leap’s waveguide technology in future AR hardware.
The future of Magic Leap remains uncertain, but the company’s strategic shifts and partnerships with tech giants like Google indicate that it is still aiming to make an impact in the AR industry.
