Magic Leap downsizes amidst pandemic, but plans follow-up AR headset

We can now add Magic Leap to the long list of companies laying off employees during this very trying time.

Rony Abovitz, Magic Leap’s Chief Executive Officer, confirmed the news following an earlier Bloomberg report that stated the augmented reality startup was “cutting half its workforce.”

According to sources close to the matter, that’s about 1,000 employees. 

Abovitz took to Magic Leap’s site to express the news in a blog post, citing COVID-19 as the reason for a company-wide restructuring. 

“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,” he said in the statement. 

This doesn’t come as much of a surprise considering that, back in December, it was reported the company’s sales numbers were way worse than expected. 

According to The Information, the company only sold 6,000 headsets out of its target goal of 100,000. 

Sure, Magic Leap came back and said the report was inaccurate, but the company didn’t provide any metrics to prove the numbers were wrong either.

At least this time around, the startup is being a bit more transparent when it comes to its current status and the future of the company.

So, what is next for Magic Leap after all this? 

For starters, the company has decided to concentrate strictly on the enterprise side of things rather than consumer. And, they’re also going to continue to work on a … second-generation Magic Leap.

Clearly, not even a pandemic can stop them from trying to get this thing right. 

“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,” Abovitz expressed later in the blog post.

Given the reactions to the first Magic Leap, let’s hope that “increased focus” also includes a design revamp for its next AR headset. Because everyone’s right, it’s ugly.