Unity Software to cut 1,800 employees, about 25% of workforce
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Unity Software makes a software toolkit used by many video game developers, including the maker of the popular Pokemon Go mobile game.
PHOTO: REUTERS
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SAN FRANCISCO – Unity Software, which replaced its chief executive in October 2023, plans to reduce its workforce by 25 per cent, eliminating about 1,800 jobs.
The San Francisco-based company, which makes software used by video game creators, said in a filing on Jan 8 that it cannot yet estimate the costs associated with the moves, which are designed to improve long-term profitability.
The reductions are part of a “company reset” outlined in November, Unity said in an e-mailed statement. At that time, management said it was reducing staff by 3.8 per cent. That followed an 8 per cent cut in May.
“This decision was not taken lightly,” the company said on Jan 8.
Mr John Riccitiello stepped down as CEO in October 2023 following a controversial tenure that included rebranding Unity as a metaverse company.
He was succeeded by technology veteran James Whitehurst, who is interim CEO.
Popular mobile games like Pokemon Go and Marvel Snap use Unity’s products.
The company implemented price hikes in 2023 that angered many customers and later reversed those plans.
In November 2023, Unity said it would reduce staff by 3.8 per cent
It also said it would shut down offices in 14 locations, including Singapore.
In May 2023, management said it would lay off 8 per cent of its workforce.
Shares of Unity rose as much as 4.8 per cent to US$40.87 in extended trading after the filing.
The stock gained 43 per cent in 2023 as sales rose and losses narrowed. BLOOMBERG
