Top executives at Magic Leap are quitting the company in the biggest leadership shakeup EVER for CEO Peggy Johnson

A number of top executives are leaving Magic Leap as part of the biggest change in leadership under the leadership of CEO Peggy Johnson. Magic Leap announced a major shake-up in its leadership yesterday, with its CTO, COO, and chief patent officer all planning to leave, while the company’s former CMO is being rehired.

  • During a leadership shake-up at Magic Leap, Insider has learned that three of the company’s key executives will be leaving the company.
  • In addition to the CTO and COO, the chief patent officer will also be leaving. A former chief marketing officer of the company is also being hired back by the company.
  • Founder Rony Abovitz stepped down as CEO of Magic Leap last August, and Peggy Johnson was appointed as the new CEO of the company.

The augmented reality company Magic Leap is undergoing another major leadership shake-up at the moment, with three high-level executives departing and a former executive being brought back into the fold, as Insider reports.

Two people familiar with the company’s changes have confirmed that several senior executives are leaving the company due to internal changes. Paul Greco, Magic Leap’s chief technology officer, will be leaving Magic Leap this month, and Henk Vliestra, the company’s chief operating officer, will be departing later this year, according to the sources. In addition to Greco, Vliestra has also been at the company since 2013.

Top executives at Magic Leap are quitting the company
Top executives at Magic Leap are quitting the company

The majority of Vliestra’s responsibilities will be transferred to the company’s chief financial officer, according to one of these people who spoke with us.

As part of an all-hands meeting held on Tuesday, these changes were announced to employees and two other executive changes were also announced, the sources said.

The Chief Patent Officer of Magic Leap, David Lundmark, will also depart the company at the end of June. Under the direction of Magic Leap’s general counsel, Lundmark will be responsible for all of Lundmark’s responsibilities. 

Daniel Diez, Magic Leap’s former chief marketing officer, has been hired back to the company as its new chief marketing officer, who will begin working at the company this month.

It was not possible to get a comment from a Magic Leap spokesperson.

As a whole, this is the biggest shake-up in Magic Leap’s leadership ranks since last summer, when Peggy Johnson took over as CEO.

The Magic Leap company laid off roughly 1,000 employees in April 2020, according to a report at the time from Bloomberg. Insider broke the news shortly after Rony Abovitz had announced that he would step down as CEO of the company.

A former Qualcomm and Microsoft executive named Peggy Johnson, who replaced Abovitz as Magic Leap’s CEO last July, has refocused the company’s efforts on the enterprise market, continuing to move away from the consumer market that was started by Abovitz.

The former Magic Leap advisor, who continues to serve on the board of the company, has since launched a new startup, Sun and Thunder, that is focused on interactive storytelling.

There are rumors that Johnson and Greco had disagreements over the decision to spin software out of the CTO’s group, according to sources close to the situation. As of right now, we are unable to find out whether this was the primary cause of Greco’s departure. It was announced in March that the company had appointed a chief software and cloud officer and a chief product officer to its executive team.

A number of the changes also occur as the company prepares to launch its next product in the near future. Earlier this year, Insider reported that Magic Leap was working on a new device that is smaller and lighter than its current device, with an even more radical adaptation planned for the future.

It was announced by Magic Leap in April of this year that the second-generation device, called Magic Leap 2, would be launched. This product will be available in early access to customers in Q4 this year and it will be made generally available in Q1 2022, the company said in a statement.

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