SAN FRANCISCO - Unity Software, the company behind the popular platform for real-time 3D content creation, has announced a significant reduction of its workforce. The company is intensifying its focus on core operations through a restructuring that will see a workforce reduction of 25%, impacting 1,800 jobs. This is part of a strategic move to bolster its financial performance and position itself for profitable growth following three quarters of missed revenue projections despite recording high profits in the previous year.
The software giant, whose platform has been instrumental in the development of popular games such as Pokemon Go and Marvel Snap, began streamlining its operations to enhance efficiency in May of the previous year. These layoffs build upon earlier cuts following the termination agreement with Weta in November, and are projected to finish by March. This latest round of layoffs adds to over 1,100 job reductions since 2021 and includes the shutdown of multiple global offices.
Unity expressed gratitude to departing employees for their contributions and has communicated to shareholders about these redundancies. The company's restructuring also includes plans to reduce office space as it aims to become more efficient and financially stable.
Investors have responded positively to the news today, as evidenced by the rise in Unity's stock price by 3.18%. The market's reaction reflects confidence in Unity's restructuring efforts to potentially lead to a leaner, more financially robust organization.
This strategic move was officially announced with an SEC filing today, detailing the elimination of jobs as part of Unity's refocusing on core operations. The company's ongoing commitment to improving its financial health and operational efficiency is clear in this latest development.
Unity's restructuring follows adjustments made to its pricing model in September after strong developer opposition which also prompted the resignation of CEO John Riccitello; James Whitehurst has been acting as interim president and CEO since then.
These changes mirror industry-wide downsizing with notable companies like Embracer Group, Square Enix Montreal, Gearbox Software, Sony (NYSE:SONY), Sega, Electronic Arts (NASDAQ:EA), and Hasbro (NASDAQ:HAS)'s Wizards Of The Coast all undergoing workforce reductions. This trend was further evidenced today when DuoLingo revealed plans to scale back its contractor workforce as part of a shift towards enhanced AI utilization within their operations.
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