Lenovo has reportedly closed its XR business unit in the United States as the company pivots from enterprise mixed reality toward consumer AI-powered wearables under the Motorola brand.

A decade of VR hardware ends quietly

According to a report from Skarred Ghost citing people familiar with the matter, most affected US-based employees have been let go while a minority received roles elsewhere in the company. Lenovo confirmed the shift in a statement, saying the XR market is evolving and the company sees stronger momentum around AI-enabled wearables.

From ThinkReality to Motorola wearables

The company is creating a more centralized organization focused on AI-powered consumer wearables and delivering a unified personal AI experience across PCs, tablets, smartphones and wearables. This marks the end of Lenovo’s enterprise-first strategy under the ThinkReality brand.

Lenovo has had a long but secondary presence in XR hardware. It produced Windows Mixed Reality headsets in 2016, manufactured the Oculus Rift S for Meta in 2019, and released enterprise-focused headsets like the ThinkReality A3 AR glasses and ThinkReality VRX. Its second-gen Legion display glasses arrived as recently as 2025.

The move reflects a broader industry realignment as major hardware makers increasingly view smart glasses and AI wearables, rather than VR headsets, as the next consumer computing platform.

Source: Road to VR