Microsoft leader Peggy Johnson is departing and will become the chief executive officer at high-profile augmented reality startup Magic Leap.
Johnson’s last day at Microsoft is Tuesday, and she will start at Magic Leap on Aug. 1.
Johnson joined Microsoft in 2014 as executive vice president of business development. She helped drive deals such as the blockbuster LinkedIn acquisition and launched Microsoft’s venture fund. Johnson previously spent 24 years at Qualcomm and is a board member at BlackRock.
Now she’ll take the reins at Magic Leap, the secretive and well-funded company headquartered in Plantation, Fla., that recently laid off workers and shifted its focus to business customers.
“Since its founding in 2011, Magic Leap has pioneered the field of spatial computing, and I have long admired the relentless efforts and accomplishments of this exceptional team,” Johnson said in a statement. “Magic Leap’s technological foundation is undeniable, and there is no question that has the potential to shape the future of XR and computing.”
So thrilled to be joining the amazing @magicleap team! And forever grateful to @satyanadella for being a role model to me as I make this transition to CEO. https://t.co/a7UqGcNE3y
— Peggy Johnson (@PeggyJ) July 7, 2020
Johnson was the first big executive hire by Microsoft CEO Satya Nadella after he took the helm of the Redmond company in 2014.
She informed Microsoft of her decision to leave on July 1, according to a regulatory filing today. Magic Leap’s shift in focus to business customers dovetails with Johnson’s experience. It also makes the company more of a direct competitor to Microsoft and its HoloLens mixed reality headset.
However, there is no outward sign that her departure will be contentious.
“I want to thank Peggy for her leadership and partnership these past six years,” Nadella said in a statement Tuesday. “Her ability to connect people, drive consensus, and forge relationships has taught me a lot. Through the years, she has been a clear role model for women at Microsoft and in technology, and I know she’ll continue to inspire young women in STEM in her new role.”
At Magic Leap, Johnson will replace Magic Leap founder Rony Abovitz, who announced in May that he was stepping down as CEO.
“We have come a long way, from starting up in my garage to creating a new medium and redefining the future of computing,” Abovitz said in a statement. “Now, under Peggy, who brings with her to Magic Leap three decades of experience identifying and executing strategic partnerships at the highest levels of business, Magic Leap can take another giant step forward in our journey.”
Magic Leap has generated immense interest over the years, and even more cash, raising more than $3 billion in its lifetime from heavy hitters including Google, Alibaba, Andreessen Horowitz, Paul Allen’s Vulcan Capital and others. It reeled in a $350 million round in May.
In a April 22 blog post, Abovitz said the company cut staff amid the COVID-19 pandemic. The New York Times reports that about 600 employees were let go, or about a third of the workforce. Magic Leap closed its Seattle engineering office around the same time.
Virtual and augmented reality has found some traction with businesses but not as much with consumers. Even with the ongoing pandemic and more people staying at home, VR remains a niche product.
Johnson’s departure leaves two women on Microsoft’s now-16-member senior leadership team. Microsoft is expected to conduct an internal and external search for her successor.
