AR laptop developer Sightful laying off a third of its employees
AR laptop developer Sightful laying off a third of its employees
After raising over $60 million, and a month after unveiling the Spacetop G1, the Israeli startup is parting ways with 20 of around 60 employees, announcing that it is shifting its focus from hardware distribution to software distribution
Israeli startup Sightful, which develops a laptop using spatial computing to offer users an AR ‘monitor’ through the use of glasses, is laying off 20 employees, comprising a third of its workforce. The layoffs are part of a strategic decision to focus solely on software development and discontinue building and marketing a complete laptop. As a result, the company's hardware department has been disbanded.
Sightful, established in 2020 and revealed only a year ago with over $60 million in fundraising from Aleph, Symbol, and Corner Ventures, was considered one of Israel's most intriguing companies. Founded by Tamir Berliner and Tomer Kahan, who previously worked at Magic Leap and PrimeSense, the company developed a laptop that replaces the physical screen with AR glasses, allowing users to open dozens of virtual screens. This innovation enables comfortable work in public places without compromising privacy. Sightful started selling the computer, called "Spacetop," about a year ago for $2,000 and recently relaunched it under the name Spacetop G1.
Shortly after the relaunch and amid Apple's release of its AR glasses, Sightful decided to abandon the hardware component and focus on marketing the operating system and software for AR computers. The company says this shift is driven by rapid technological advancements in the computing market, highlighted by global tech giants' announcements of AI-based computers. According to Sightful, this change accelerates its business model, allowing the deployment of its operating system on various computers without being "locked" to its own device.
“This is not the path the company intended, following so quickly on the heels of the announcement of Spacetop G1 - a product designed with the necessary hardware and compute to enable spatial computing in a laptop form factor. However, this rapid advancement in the broader market is very much aligned with the company’s long-term strategic vision, which has always been focused on software, bringing AR productivity to as many people as possible,” the company wrote in a press release. “Essentially, these market changes enabled an acceleration in Sigthful’s path. That acceleration has positive aspects including a significant increase in our total addressable market and faster speed to market, but also has negative aspects including the termination of valued employees.”
Berliner, CEO and co-founder of Sightful, stated: "The timing for implementing this strategy is earlier than we had planned, but as a dynamic startup, we must adjust and respond to changing market conditions, especially when they accelerate our plans. We continue to advocate for changing the 'mobile work world,' strongly believe in the power of augmented reality, and remain committed to our mission to free the laptop industry from the limitations of screens. This necessary shift in business focus means parting with a group of highly talented and groundbreaking individuals who were true partners in establishing our vision. We thank those who believed in us from the start and are doing everything we can to help them find new opportunities."
