Alex Heath

The once-high-flying AR startup laid off its entire sales and marketing division this week, or about 75 people, several sources tell me. (Amazingly, Magic Leap had about 1,100 full-time employees before this.) The new strategy, sources say, is to become a component vendor for other companies looking to build their own headsets.

New Magic Leap CEO Ross Rosenberg didn’t respond to my request for comment on the cuts, but a company spokesperson told Bloomberg they were done “to better align with market dynamics and emerging opportunities.”