Unity Software announced on Monday that it is reducing its workforce by 1,800 employees, which is about 25% of its total employees, according to a report. This is part of a plan to reorganize the company.
In November, Unity informed investors that they would be evaluating their products, finances, and might make changes like stopping some products, cutting jobs, and reducing office space. As a result of this news, the company’s stock increased by nearly 5% in after-hours trading.
Unity Software Cuts 25% of Workforce in Company
In the document, Unity mentioned that it cannot accurately predict the expenses related to these job cuts but anticipates most of them happening in the first quarter of 2024.
Unity has faced challenges over the past year. In May, the company revealed a set of job cuts impacting 600 employees, which is approximately 8% of its total workforce. Unity stated that this decision aimed to foster “long-term and profitable growth.”
Unity caused dissatisfaction among many developers in September when it revealed a modification in pricing. A group of game developers expressed their discontent through a public letter, stating that the alteration “puts at risk both small and large game developers” and was implemented “without consulting the industry.”
In the subsequent month, John Riccitiello retired from his positions as Unity’s CEO, chairman, and board member. Jim Whitehurst, previously the CEO of Red Hat, took on the role of interim CEO. Simultaneously, Roelof Botha, who serves as the lead independent director on Unity’s Board and is a partner at Sequoia Capital, assumed the position of chairman.
Despite a yearly increase of over 40% in share value, there was a nearly 50% decline between July and the conclusion of October. Unity faced challenges in its third-quarter earnings report, falling short of analysts’ predictions and refraining from providing guidance for the upcoming quarter.
In a letter to shareholders during that period, Unity acknowledged mixed results, stating, “Although revenue aligned with expectations, we acknowledge the potential for improvement in our performance.”
Unity Software recently announced a significant workforce reduction, cutting 1,800 jobs, or 25% of its total employees, as part of a company-wide restructuring plan. Despite uncertainties about the costs involved, this move aligns with Unity’s evaluation of products and finances, aiming for long-term growth.