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Rony Abovitz, the Founder and CEO of augmented reality unicorn Magic Leap, announced his intention to step down from his position at the head of the company as soon as a suitable replacement is found. The company, which is valued at $6.4 billion, is actively recruiting candidates.
Abovitz’s pending departure coincides with the company’s announcement that it has secured $350 million in new funding, allowing it to withdraw layoff notices. In April 2020, Bloomberg reported that Magic Leap would lay off almost around 1,000 employees, accounting for half of its workforce.
Abovitz said the decision to step down was made in consultation with Magic Leap’s Board and that he is in discussions about how he will continue to provide strategy and vision from a Board level.
In a press release, Abovitz said, “As the Board and I planned the changes we made and what Magic Leap needs for this next focused phase, it became clear to us that a change in my role was a natural next step. I discussed this with the Board and we have agreed that now is the time to bring in a new CEO who can help us to commercialize our focused plan for spatial computing in enterprise.”
Last month, the company announced it would pivot to focus on enterprise applications following disappointing initial sales numbers for its consumer-oriented augmented reality headset.