In context: In April, studies claimed that Magic Leap would be cutting 1,000 work thanks to problems caused by Covid-19, which would’ve been about 50 percent of its workforce. Magic Leap is barely the only organization to lay off employees amidst this disaster, but offered its deficiency of critical or commercial results to date, it was probable a specifically difficult tablet to swallow.
Fortunately for both of those Magic Leap and its remaining employees, they have all been granted a stay of execution. A new report from Enterprise Insider promises that Magic Leap CEO Rony Abovitz managed to secure $350 million in extra funding, which has allowed the organization to push pause on its layoff ideas.
This information was discovered to Magic Leap employees through a memo sent out by Abovitz himself. The subsequent excerpts summarize the circumstance:
I am very happy to report currently that we have secured financing for Magic Leap – and that we have shut the 1st period of that expense and dedication currently. The $350mm expense is led by current significant buyers in Magic Leap, as perfectly as new buyers. We are also doing the job on closing probable extra expense in the coming weeks…
…Nowadays, as we have secured financing, we are also formally withdrawing the conditional Alert observe that was sent to you on April 22, 2020, in any other case there are no changes to the terms of work and we glimpse ahead to continuing normal operations.
We’re not guaranteed which buyers Magic Leap turned to for guidance during these hoping times, but in accordance to the memo, the funding arrived from both of those new and current sources. Enterprise Insider notes that corporations like Google, AT&T, Alibaba, and Warner Bros currently have stakes in the organization, so maybe they chipped in some extra income.
It’s not clear how several of the 1,000 employees previously slated for termination are nevertheless remaining at Magic Leap HQ. Nevertheless, $350 million is a sizable income infusion, and for the sake of Magic Leap’s employees, we hope it is really more than enough to carry the organization as a result of the Covid-19 pandemic without any further reductions to the ranks.