Magic Leap secures $350 million in additional funding, presses pause on layoffs

In context: In April, reviews claimed that Magic Leap would be chopping 1,000 careers thanks to troubles caused by Covid-19, which would’ve been about 50 percent of its workforce. Magic Leap is rarely the only company to lay off personnel amidst this disaster, but provided its deficiency of significant or professional good results to day, it was probably a specifically hard tablet to swallow.

The good news is for the two Magic Leap and its remaining personnel, they have all been granted a stay of execution. A new report from Business enterprise Insider statements that Magic Leap CEO Rony Abovitz managed to secure $350 million in extra funding, which has permitted the company to push pause on its layoff strategies.

This info was discovered to Magic Leap personnel by way of a memo despatched out by Abovitz himself. The pursuing excerpts summarize the problem:

I am pretty content to report today that we have secured financing for Magic Leap – and that we have closed the very first period of that expenditure and motivation today. The $350mm expenditure is led by recent significant traders in Magic Leap, as nicely as new traders. We are also doing the job on closing probable extra expenditure in the coming months…

…Today, as we have secured financing, we are also formally withdrawing the conditional Alert recognize that was despatched to you on April 22, 2020, or else there are no improvements to the phrases of work and we search forward to continuing regular functions.

We are not guaranteed which traders Magic Leap turned to for support in the course of these trying moments, but according to the memo, the funding came from the two new and existing resources. Business enterprise Insider notes that businesses like Google, AT&T, Alibaba, and Warner Bros presently have stakes in the company, so most likely they chipped in some extra funds.

It truly is not distinct how several of the 1,000 personnel beforehand slated for termination are nevertheless left at Magic Leap HQ. Nonetheless, $350 million is a sizable funds infusion, and for the sake of Magic Leap’s personnel, we hope it really is adequate to carry the company by way of the Covid-19 pandemic without any additional reductions to the ranks.

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