Magic Leap announces layoffs and enterprise refocus to ensure second AR headset

The Magic Leap 1 augmented reality headset hasn’t exactly been the world-changing success its developers intended. Today, the company announced that it’s making the difficult choice to lay off employees, cut costs, and refocus more heavily on enterprise customers so its next-generation model Magic Leap 2 will actually reach the market.While the company hasn’t disclosed the scope of either the layoffs or the enterprise pivot, they’re not entirely surprising. Despite funding from major tech companies such as Google and the support of top U.S. wireless carrier AT&T, Magic Leap has struggled to win broad adoption from consumers or developers, in large part because of its $2,300 to $3,000 pricing. After focusing its initial “Creator Edition” model on developers, it relaunched the headset last December and focused on promoting enterprise applications.