Troubled company Magic Leap has this week announced layoffs from its workforce as the company changes focus from consumer to enterprise markets. After spending millions developing an augmented reality headset which only sold a few thousand units to consumers, Magic Leap has been fighting an uphill battle to increase sales and build a sustainable business.
Magic Leap CEO Rony Abovitz, has published an article this week on the Magic Leap website explaining the reasoning behind the recent layoffs and the effect the coronavirus pandemic on the already struggling business.
“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.
Adapting our company to these new market realities and our increased focus on enterprise means we must align our efforts to focus on the areas of our business that advance our technology, ensure delivery of Magic Leap 2, and expand 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.”
Read the full article over on the Magic Leap website by following the link below.
Source : Magic Leap