Rony Abovitz, the CEO of a well known and lavishly funded AR company that is Magic Leap, is about to step down from his position. The exact date and time of his retirement from the long-held spot isn’t out for the public yet, but it is surely the end of an era for Magic Leap.
Magic Leap has had a good run since the beginning with top-notch technology being delivered to market from their end and venture capitalists taking interest equally. The once buzzy start-up had earned a high profile because of its early take on new technology and the amount of venture capital it had raised. With Rony’s tenure ending at the company, things are surely about to change a lot.
Over the last decade itself, Magic Leap was able to raise 3 billion dollars, out of which 350 million dollars were raised only in the last month. Despite releasing only one product to date, funding in the company did not dwindle at any point. Magic Leap surely had to make drastic decisions to keep everything afloat, like laying off 1000 employees at once.
The company has also decided to let go of the consumer business it was previously in and now focus on the more favorable selling of enterprise-grade devices to other companies. Big changes are surely incoming for the company, and with Abovitz leaving his position as CEO, the rules inside and outside will reflect the same.
The retirement for Abovitz, as described by him, is a natural next step for him and Magic Leap. He will continue to be the CEO for now till the board finds a replacement for him. They might have already found the replacement, but the information isn’t out for the public. Despite that, it is assured that Rony would be leaving his long-held position soon and advising in favor of the company as only a member of the board.
The news of Abovitz leaving, however, was circulated as a memo by himself to the company’s employees. In the memo, he mentions his retirement and how his next step would be to provide strategy and vision from the board level.
The decision was taken for the benefit of the company and the need for a focussed direction in which the brand has to work moving forward. Rony also says that now is the perfect time to bring in a CEO who can help commercialize the focussed plan of spatial computing in the enterprise. It is also confirmed that the company has raised significant new funding, which will be crucial to moving into the new direction Magic Leap is aiming at. Abovitz changing his role was one of the steps in this direction, as he mentioned in an interview.
Image source: TheVerge