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Magic Leap reportedly laying off 1,000 employees and dropping consumer business

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Combined actuality firm Magic Leap is reportedly shedding round 1,000 workers and abandoning its deal with shopper headsets. Bloomberg reported the news earlier immediately, citing nameless sources, and Magic Leap confirmed an unspoken variety of layoffs have been taking place on its site. “These adjustments will happen at each degree of our firm, from my direct studies to our manufacturing unit workers,” writes CEO Rony Abovitz.

Bloomberg writes that along with shedding what quantities to half its workforce, the corporate will wind down its consumer-focused enterprise, which included video video games and leisure apps. It is going to deal with enterprise makes use of, probably together with a partnership with a big unnamed well being care firm. Abovitz confirmed the shift to enterprise. “The latest adjustments to the financial atmosphere have decreased availability of capital and the urge for food for long run investments,” he writes, and “the near-term income alternatives are presently focused on the enterprise aspect.”

This accelerates a transition Magic Leap — which has obtained greater than $2 billion in funding since 2010 — was already making. The corporate tweaked its headset title final 12 months to enchantment extra to enterprise prospects, and because the pandemic started, it’s promoted the roughly $2,300 Magic Leap One as a device for distant work. Augmented and blended actuality {hardware} corporations have seen larger success in fields like well being care, manufacturing, and coaching than they’ve in private computing, the place headsets are nonetheless seen as an costly and awkward novelty. However all the trade has contracted over the previous few years, with small corporations like ODG and Meta folding. One of many few corporations nonetheless actively promoting shopper headsets is Nreal, whose founder beforehand labored for (and has been sued by) Magic Leap.

Magic Leap’s future appears unsure, however the firm says it’s nonetheless transferring ahead with the Magic Leap 2 headset. “Given the very tough and difficult circumstances companies now face, there’s an elevated want for applied sciences like ours and we’re presently within the means of negotiating income producing strategic partnerships that underscore the worth of Magic Leap’s know-how platform within the enterprise market,” writes Abovitz.

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