AR pioneer Magic Leap is laying off 193 employees as it shifts from building first-party headsets to becoming a waveguide supplier for other companies, marking the latest strategic pivot for the once-billion-dollar startup.

A WARN Act notification filed with Florida officials on July 20 reveals that product development and engineering roles across software, hardware, UX, manufacturing, and executive leadership will be affected, with layoffs effective October 1. The company, which has raised billions since its inception, is now positioning itself as an “essential AR ecosystems partner, waveguide supplier, and device integration expert” rather than a direct AR headset maker.

Magic Leap announced the pivot earlier this month, saying it would “accelerate the development of AI display glasses.” The company had previously shown an Android XR prototype in partnership with Google. While it is unclear how many employees will remain, estimates suggest a few hundred will stay to support the new supplier business model.

Sources: Road to VR, Magic Leap Newsroom