Blended reality business Magic Leap is supposedly laying off around 1,000 staff members and deserting its focus on consumer headsets. Bloomberg reported the news earlier today, pointing out confidential sources, and Magic Leap validated an unstated variety of layoffs were happening on its website “These modifications will occur at every level of our business, from my direct reports to our factory employees,” writes CEO Rony Abovitz.
Bloomberg writes that in addition to laying off what totals up to half its labor force, the company will unwind its consumer-focused business, which included computer game and home entertainment apps. It will focus on enterprise uses, potentially including a partnership with a big unnamed health care business. Abovitz verified the shift to business. “The recent modifications to the financial environment have actually reduced availability of capital and the hunger for longer term investments,” he writes, and “the near-term revenue chances are presently concentrated on the enterprise side.”
This accelerates a transition Magic Leap– which has gotten more than $2 billion in financing given that 2010– was currently making. The company tweaked its headset name last year to appeal more to service consumers, and given that the pandemic began, it’s promoted the roughly $2,300 Magic Leap One as a tool for remote work One of the couple of business still actively promoting customer headsets is Nreal, whose founder previously worked for (and has been sued by) Magic Leap.
Magic Leap’s future appears unpredictable, but the company states it’s still moving on with the Magic Leap 2 headset. “Provided the really difficult and tough scenarios services now deal with, there is an increased need for innovations like ours and we are presently in the procedure of working out income creating strategic collaborations that underscore the value of Magic Leap’s innovation platform in the business market,” writes Abovitz.