Yahoo Finance Unity Software to Cut 1,800 Employees, About 25% of Staff
(Bloomberg) -- Unity Software Inc., which replaced its chief executive officer in October, plans to reduce its workforce by 25%, eliminating about 1,800 jobs in a new round of cuts.
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The San Francisco-based company, which makes software used by video-game creators, said in a filing Monday it can’t 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 emailed statement. At that time, management said it was reducing staff by 3.8%. That followed an 8% cut in May.
“This decision was not taken lightly,” the company said Monday.
John Riccitiello stepped down as CEO in October 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 last year that angered many customers and later reversed those plans.
Shares of Unity rose as much as 4.8% to $40.87 in extended trading after the filing. The stock gained 43% last year as sales rose and losses narrowed.
(Updates with company comment starting in third paragraph.)
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