Rony Abovitz, the founder and CEO of Magic Leap, is stepping down as the head of the augmented reality (ar) startup. The news comes amid a major restructuring at the Plantation, Florida-based company.
Here are the details:
- In a blog post, Abovitz wrote that Magic Leap is actively searching for a new CEO. He will remain in his position throughout the transition.
- Last month, the company announced that it would lay off 1,000 employees — around half its workforce — as it outlined a pivot from consumer to enterprise products. Abovitz ascribed the change to disruption caused by the coronavirus. Cartoon Brew reported an exclusive story about the loss of between 80–120 animation jobs.
- Magic Leap spent years secretively developed its flagship product, the much-hyped Magic Leap One ar headset. The $2,300 kit was unveiled in 2017 and marketed as an entertainment system for the general public, but sales fell short of expectations.
- In 2018, Business Insider reported that the company’s efforts to miniaturize its technology and bring its product to market was costing it $50 million per month.
- Abovitz has led Magic Leap since founding it in 2011. Over the years, he amassed around $3 billion in funding, according to Crunchbase. That includes another $350 million this month as it started to restructure.
Read Abovitz’s full post below: