In context: In April, reviews claimed that Magic Leap can be reducing 1,000 jobs as a result of problems attributable to Covid-19, which might’ve been about half of its workforce. Magic Leap is hardly the one firm to put off workers amidst this disaster, however given its lack of vital or business success to this point, it was probably a very powerful tablet to swallow.
Fortunately for each Magic Leap and its remaining workers, they’ve all been granted a keep of execution. A brand new report from Business Insider claims that Magic Leap CEO Rony Abovitz managed to safe $350 million in additional funding, which has allowed the corporate to press pause on its layoff plans.
This data was revealed to Magic Leap workers through a memo despatched out by Abovitz himself. The following excerpts summarize the state of affairs:
I’m very joyful to report right now that now we have secured financing for Magic Leap – and that now we have closed the primary part of that funding and dedication right now. The $350mm funding is led by present main traders in Magic Leap, in addition to new traders. We are additionally working on closing potential additional funding in the approaching weeks…
…Today, as now we have secured financing, we’re additionally formally withdrawing the conditional WARN discover that was despatched to you on April 22, 2020, in any other case there aren’t any modifications to the phrases of employment and we stay up for persevering with regular operations.
We’re undecided which traders Magic Leap turned to for help throughout these attempting occasions, however in line with the memo, the funding got here from each new and current sources. Business Insider notes that companies like Google, AT&T, Alibaba, and Warner Bros have already got stakes in the corporate, so maybe they chipped in some additional money.
It’s not clear how most of the 1,000 workers beforehand slated for termination are nonetheless left at Magic Leap HQ. However, $350 million is a large money infusion, and for the sake of Magic Leap’s employees, we hope it is sufficient to hold the corporate by the Covid-19 pandemic with none additional reductions to the ranks.