Magic Leap founder steps aside as CEO
Magic Leap founder Rony Abovitz is stepping aside as chief executive of the financially pressed technology company after the Plantationbased firm raised millions in new funding.
In a message to staff dated May 28 on the company’s website, Abovitz said he will remain in his post until a successor is found.
The decision came after the often-secretive company announced the layoffs of 1,000 employees, or half of its payroll, but later raised new money from investors. Magic Leap, which maintains a headquarters in Plantation and a separate operation in California, notified the state of Florida in late April that it intended to permanently lay off 403 people locally on June 21.
Trade publications reported Friday that employees had been told the layoffs would be rescinded since the company raised new money, which was said to be in the neighborhood of $350 million.
Magic Leap representatives could not be reached for comment.
Over the last decade, Magic Leap raised $2.3 billion from Google, Alibaba and a variety of other technology giants and large investors.
Sales of Magic Leap’s so-called wearable spatial computing device fell far short of projections, industry analysts say, prompting the company to shift toward business customers. While the phrase “spatial computing” would make many ad men blanch, the term relates to the intertwining of human reality with the computer landscape — in effect bringing together the real world and the digital world.
‘A message from Rony’
In his message to employees, Abovitz affirmed that the company is shifting its sales focus from consumers to the business world.
“As we’ve shared over the last several weeks, in order to set Magic Leap on a course for success, we have pivoted to focus on delivering a spatial computing platform for enterprise,” Abovitz said in a posting entitled, “A Message From Rony.”
“We have closed significant new funding and have very positive momentum towards closing key strategic enterprise partnerships,” he said.
But he also reported his time as
CEO is nearing an end.
“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,” he said. “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. We have been actively recruiting candidates for this role and I look forward to sharing more soon.”
Born in 1971, Arbovitz earned a degree in engineering at the University of Miami and in 2004 founded MAKO Surgical Corp, a company that manufactured surgical robotic arm assistance platforms. In 2013, MAKO was sold to
Stryker Corp. for $1.65 billion.
Innovation in west Broward
In 2015, Magic Leap opened a new headquarters in Plantation amid fanfare from employees from South Florida, elsewhere around the U.S. and overseas.
But outsiders said they were mystified by what the future would entail as Magic Leap kept a tight lid on what it was developing.
Magic Leap did offer some clues, applying for nearly 100 patents that gave clues to its potential products: a compact scannable technology, a method for surgery using augmented reality; a method for modifying a sporting event using augmented reality; a system for generating virtual rooms; and many more.
In 2017, it unveiled its first product: The Magic Leap One: Creator Edition. It was a “wearable computer” that combined the company’s “Digital Lightfield” technology, visual perception and machine learning. The product was designed to let users interact with digital content in the real world. It was aimed at the “creator community,” including developers in the entertainment industry who could use the device to create content.
The product came with a headset, computing pack and controller.
A year after its introduction, the company posted the price: $2,295 for a notebook-sized computer “that could create digital experiences like people have seen in movies such as “Harry Potter” and “Blade Runner.”’
“This is a joyful moment for all of our employees, and we look forward to working with a diverse and forward-thinking set of developers, artists, creators, and businesses right here in Florida and everywhere,” Abovitz declared.
But according to published reports, 6,000 devices were sold, well short of the founder’s goal of 100,000.
In the meantime, the company entered into a variety of business partnerships with companies including JetBlue, AT&T and the real estate service arm of French international bank, BNP Paribas.