Unity Software To Reportedly Cut 25% Workforce Affecting 1,800 Employees Amid Recovery Efforts

In a bid to recuperate from a turbulent period, Unity Software Inc. U has decided to lay off approximately 25% of its workforce.

What Happened: The software company, based in San Francisco, plans to part ways with about 1,800 employees, as reported by The Wall Street Journal.

This announcement comes after the company faced a significant backlash from customers last fall due to the introduction of new fees, which resulted in the departure of its CEO, John Riccitiello.

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Why It Matters: Unity’s recent workforce reduction is part of a series of measures implemented by the company to recover from its challenging period. In November 2023, the company cut 265 jobs and announced office closures to accommodate its strategic “reset” following the pricing policy backlash. The company had also suspended its guidance to evaluate its product portfolio and cost structure after releasing its third-quarter earnings. After missing its revenue forecasts for the third quarter of 2023 and not providing guidance for the fourth quarter or 2024, Unity told shareholders that it was “doing too much and not executing to its full potential.”

The company, which specializes in tools for creating video games and other applications, aims to emerge as a leaner, more agile, and faster-growing entity.

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