The layoffs are part of the company’s efforts towards technology licensing, particularly concerning its optics technology used in AR headsets. Credit: khoamartin/Shutterstock.

Magic Leap, a US-based augmented reality (AR) startup, has reportedly cut around 75 roles, impacting its “entire” sales and marketing departments, Bloomberg reported, citing two sources.  

The decision to cut jobs comes as Magic Leap aims to navigate the evolving augmented reality market and capitalise on emerging business opportunities. 

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A spokesperson from Magic Leap stated that the layoffs are part of a strategic adjustment aimed at aligning more closely with current market dynamics and potential new opportunities.  

The spokesperson confirmed that the company has consolidated its frontline engagement to the existing developer support as well as care teams. 

“We will continue to actively support Magic Leap’s customers, developers and our large ecosystem through the Developer Support and Care teams,” Magic Leap spokesperson added. 

Employees affected by the layoffs are being offered two months of severance pay, with the condition of signing non-disclosure agreements.  

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According to sources, the job cuts were unexpected and have added to the uncertainty that has been present for several months.  

Founded in 2010, Magic Leap initially set out to create an augmented reality headset for the consumer market.  

However, its first product launched in 2018 did not meet expectations. Subsequently, the company shifted its focus to business applications.  

The recent layoffs are part of another pivot towards technology licensing, particularly concerning the company’s optics technology used in AR headsets. 

Sources, who preferred to remain anonymous, have indicated that the company’s direction has become increasingly uncertain.  

Earlier this year, Magic Leap informed its employees of a reorganisation that would de-emphasise direct sales of its headsets to business clients in favour of licensing its optics technology. 

Magic Leap previously reduced its workforce by about 1,000 workers, or half of its staff, in 2020, Bloomberg noted.  

The current number of employees at the company remains undisclosed.