Unity Software will cut its workforce by 25 percent
Videogame software provider Unity Software said Monday it will cut its workforce by 25 percent, or about 1,800 jobs, in one of the tech industry's first major layoffs this year.
in a securities filed, Unity said the cuts would allow it to “restructure and refocus on its core business and position itself for long-term and profitable growth.” The company said in a statement that all company teams will be affected.
Last week, printer maker Xerox said it would lay off 15 percent of its 23,000-member global workforce in the first quarter of 2024, an effort to focus its business on services and away from its iconic photocopiers. .
The cuts signal what could be the start of another difficult year for the tech industry, which laid off thousands of workers last year amid challenging economic conditions and overly promising projections for company growth. While many tech companies have said the worst is now behind them, some businesses have been able to recapture the pre-pandemic sales momentum that prompted them to overhire in the first place.
Unity has cut jobs before, including 265 jobs in November after interim Chief Executive James Whitehurst announced he was “resetting” the company during an earnings call.
The company said in its statement that “the decision was not taken lightly” and that it was committed to helping affected employees.
The San Francisco-based company's software is the underlying tool powering more than two million developers' video games.
Last time, the company faced a major backlash from thousands of game developers globally over a change in its pricing structure. The new fee structure, which was to eventually push the company into profitability, would charge developers who relied more on the software as their games gained popularity.
In October, Unity's former chief executive John Riccitiello, who was the main proponent of the pricing change, stepped down after nine years at the company. After complaints, the company withdrew some changes.