Magic Leap pivoted to the enterprise house not too long ago after an prolonged lukewarm reception by customers for its $2,300 AR headset. Amid the coronavirus pandemic, firm founder and CEO Rony Abovitz then introduced layoffs final month that had been slated to happen at “each stage” of the corporate. Though these layoffs had been allayed by a recent $350 million funding spherical at zero hour, Abovitz now says he’s stepping down as CEO.
Abovitz launched a press release on the Magic Leap weblog explaining the transfer, saying change in his position was “a pure subsequent step” to bringing concerning the subsequent part of the corporate.
“I mentioned this with the board and we’ve agreed that now’s the time to usher in a brand new CEO who will help us to commercialize our targeted plan for spatial computing in enterprise. We have now been actively recruiting candidates for this position and I stay up for sharing extra quickly,” Abovitz says.
Abovitz is ready to stay as CEO till a brand new one is confirmed. There’s no phrase on what position the founder will fill afterwards, nonetheless he says it could be at “the board stage.”
Right here’s Abovitz’s assertion in full:
As we’ve shared during the last a number of weeks, with the intention to set Magic Leap on a course for fulfillment, we’ve pivoted to give attention to delivering a spatial computing platform for enterprise.
We have now closed vital new funding and have very optimistic momentum in direction of closing key strategic enterprise partnerships.
Because the board and I deliberate the adjustments we made and what Magic Leap wants for this subsequent targeted part, it grew to become clear to us change in my position was a pure subsequent step. I mentioned this with the board and we’ve agreed that now’s the time to usher in a brand new CEO who will help us to commercialize our targeted plan for spatial computing in enterprise. We have now been actively recruiting candidates for this position and I stay up for sharing extra quickly.
I’ve been main Magic Leap since 2011 (beginning in my storage). We have now created a brand new subject. A brand new medium. And collectively we’ve outlined the way forward for computing. I’m amazed at every little thing we’ve constructed and stay up for every little thing Magic Leap will create within the many years to return.
I’ll stay our CEO via the transition and am in discussions with the board almost about how I’ll proceed to offer technique and imaginative and prescient from a board stage. I stay tremendous enthusiastic about Magic Leap’s future and imagine deeply in our crew and all of their unimaginable expertise and capabilities.
Since its founding in 2011, Magic Leap has amassed over $three billion in capital from traders reminiscent of Google, Saudi Arabia’s Enterprise Capital Fund, Alibaba, and Axel Springer, making it one of the crucial well-funded startups in tech historical past.
Having launched its Magic Leap One (additionally stylized ‘Magic Leap 1’) in 2018, numerous stories recommend the system’s gross sales numbers had been far under the corporate’s expectations because it uncomfortably straddled between developer and client.Picture courtesy Magic Leap
Earlier than pivoting solely to enchantment to the enterprise house within the near-term, Magic Leap was funding a gradual stream of consumer-focused apps for the $2,300 headset, a perplexing transfer on the time contemplating the corporate hadn’t launched any timeline on when customers would anticipate a less expensive headset.
Whereas the corporate not too long ago introduced a Magic Leap 2 within the works—formally slated to launch someday in 2021— that too can be focused at enterprise and prosumers, so it could be a while but till we see Magic Leap re-enter the buyer house.
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