Former Microsoft Executive Peggy Johnson Takes Helm of Struggling Magic Leap
Magic Leap names former Microsoft business development chief Peggy Johnson as its new CEO following a brutal restructuring and massive funding round. The leadership change marks a strategic pivot toward enterprise customers as the company attempts to recover from near-bankruptcy.
Magic Leap appoints Peggy Johnson, the former executive vice president of business development at Microsoft, as its new chief executive. She brings thirty years of technology industry experience to the role and officially starts on August 1, 2020. Her arrival follows a massive $375 million funding round that saves the company from potential bankruptcy.
This leadership transition ends the tenure of founder Rony Abovitz, whose ambitious promises for spatial computing fail to materialize into successful consumer products. The company lays off most of its staff in April 2020 amid a severe cash crunch. Securing emergency funding requires the replacement of Abovitz with a more operationally focused leader.
Johnson faces the task of steering Magic Leap toward a strict enterprise focus, mirroring the successful strategies of Microsoft HoloLens and Google Glass. During her time at Microsoft, she oversees major acquisitions like LinkedIn and launches the company's M12 venture fund. She expresses strong confidence in Magic Leap's foundational technology and its potential to shape the future of extended reality.