San Francisco-based tech giant, Unity Software, has made the decision to lay off 1,800 employees, which accounts for approximately 25% of its workforce. The company described these cuts as part of a “company reset” that was first mentioned in November. Unity, known for its popular game development tools, aims to streamline operations and accelerate growth.
Previous layoffs have also been a part of this restructuring process. From June 2022 to May 2023, under the leadership of former CEO John Riccitiello, 1,100 employees were let go. These changes were met with criticism from customers, ultimately leading to Riccitiello’s retirement. Interim CEO Jim Whitehurst, who took over from Riccitiello, acknowledged the need for a leaner and more efficient organization.
In addition to the workforce reductions, Unity also announced the termination of its contract with Weta FX, a company founded by Peter Jackson. This decision resulted in 265 employees being left without jobs. Unity further committed to closing approximately 14 corporate offices as part of its restructuring plan.
Despite the negative repercussions of these changes, Unity’s stock saw a positive response in after-hours trading, with a more than 4% increase on Monday. The company had 7,703 full-time employees as of the end of 2022, the majority of whom held technical roles and were based outside the United States.
Unity Software has not provided specific details regarding the recent layoffs, but reports suggest that they will impact all areas of the business, including teams and regions. The company remains committed to achieving greater agility and maximizing the potential of its workforce.
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