Magic Leap completely restructures and dismisses half of its employees

Magic Leap announced a restructuring process to focus exclusively on business products. Half of the employees were laid off.

Magic Leap is undergoing a complex restructuring process. The startup responsible for Magic Leap One and other mixed reality technologies will change its focus to concentrate entirely on business products*. The consumer department has completely disappeared. However, this major step is also reflected in the dismissal of half of the workforce, equivalent to 1,000 employees.

About 1,000 employees lost their jobs due to restructuring

This is a radical change of direction for the American company, as it initially intended to become the maximum reference for the extended reality in the household. They expressed their regret, as is usual in such situations, that they had to do without a large number of workers. However, Rony Abovitz, CEO of Magic Leap, points out that the redundancies affect all levels, from managers to factory workers.

“While our management team, board, and investors still believe in the long-term potential of our intellectual property, short-term revenue opportunities are currently focused on the business side,” said Abovitz. The company is considering opening its doors to new external investments; it is even considering partnering with a medical company in the near future. The goal, he said, is to form a strategic partnership that leverages the value of the “Magic Leap” in the business market.

Magic Leap seeks buyers

According to Bloomberg’s information, the start-up was looking for a potential buyer among medical, financial and industrial facilities. However, the coronavirus pandemic got in the way. It is well known that the world economy is going through a rather complicated period and it seems that this is just the beginning. Obviously, the situation affected Magic Leap’s short-term plans.