Magic Leap has had it turn with struggling for survival for a while now due to poor sales, plus the coronavirus out. In April, the company announced that it’s laying off employees at every level, and a news agency reported that about 1,000 workers stand the risk of losing their jobs.
The story may have changed as the mixed-reality headset-maker has finally made a headway — according to Business Insider and The Information, company chief Rony Abovitz told his employees in a memo that Magic Leap has managed to raise $350 million from existing and new investors.
With the result, Abovitz has reportedly withdrawn the layoff notices sent to remaining staff in April. We’re not certain how many employees lost their jobs before this lifeline was received, but those still with the company won’t have to worry about getting laid off anymore, not now and not in the near future.
Despite the hardships the company has had to face in recent years, Magic Leap started strong and raised $2.6 billion to develop its mixed reality headset. Unfortunately, that’s yet to translate to commercial success.
Bloomberg reported in March that the company chose to shift its focus on business and to start finding a buyer for a sale that could fetch up to $10 billion due to the lackluster sales of its AR headset.