Magic Leap Cuts 75 Roles in Sales and Marketing Departments amid Market Shifts
Magic Leap, a US-based augmented reality (AR) startup, has made headlines with reports of cutting around 75 roles, impacting its entire sales and marketing departments. This decision comes as the company aims to navigate the evolving AR market and capitalize on emerging business opportunities.
According to Bloomberg, citing two sources, the layoffs are part of a strategic adjustment to align more closely with current market dynamics and potential new opportunities. A spokesperson from Magic Leap confirmed that the company has consolidated its frontline engagement to the existing developer support and care teams.
“We will continue to actively support Magic Leap’s customers, developers, and our large ecosystem through the Developer Support and Care teams,” the spokesperson added.
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 AR 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.
Sources, who preferred to remain anonymous, have suggested that the company’s direction has become increasingly uncertain. 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.
In 2020, Magic Leap previously reduced its workforce by about 1,000 workers, or half of its staff. The current number of employees at the company remains undisclosed.
The news of Magic Leap’s layoffs has sparked discussions about the company’s future in the AR market and its strategy moving forward. Stay tuned for more updates on this developing story.
