- Magic Leap lays off staff as it struggles to adapt to the global Covid-19 crisis
- AR company outlines future: “Targeted changed to how we operate and manage costs”
- Increased focus on enterprise a d focus on delivering Magic Leap 2
Augmented reality powerhouse Magic Leap says it has been forced to cut jobs across at every level of the company as part of a shifts in its core focus.
The business has struggled to adapt to the unprecedented changes as a result of the global coronavirus pandemic which has “impaired and impacted the daily lives of nearly everyone on the planet.”
The operation of the company came under scrutiny due to the recent shift in the economic environment which has decreased the availability of capital and the appetite for longer term investments.
In a blog post, Magic Leap said: “To better prepare Magic Leap for the future, we have taken a close look at our business and are making targeted changes to how we operate and manage costs.
“This has made it necessary for us to make the incredibly difficult decision to lay off a number of employees across Magic Leap.
“This has been a painful process, as every member of our Magic Leap team has demonstrated not only unparalleled talent but a true passion for our company’s mission. But after lengthy, careful consideration, I have determined this is ultimately necessary to give us the best chance for future success.
“These changes will occur at every level of our company, from my direct reports to our factory employees.”
A report from Bloomberg claimed the company could lose up to half of its staff base – or around 1,000 roles – although Magic Leap did not comment on numbers in its blog.
The company is adapting its strategy and focus to “these new market realities” with an increased focus on enterprise and as such will align its efforts to focus on the areas of the business that advance its technology.
Magic Leap confirmed that this new focus will include the delivery of Magic Leap 2 as well as expand its product-market fit and revenue generation.
“This transformation also means that we must decrease investments in areas where the market has been slower to develop, providing us with a longer runway while retaining the ability to explore and build on future use cases when the market signals readiness,” the company added.
The company underscored its faith in the long-term potential of its IP, its near-term revenue opportunities are shifting focus on the enterprise side of the business.
In a nod to its successors in the last few years, the company said: “We have created new science, bent the laws of physics, created amazing, imaginative new worlds, and brought people from across the globe together around a singular belief - that we can create technology in service of humanity.”
Despite the uncertainty the company is looking at the future and confident the desire and need of spatial computing in the world is “the beginning of a long journey.”
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