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UnitySoftware announced on Monday that it is shedding 1,800 jobs, or about 25% of its workforce, in the latest round of layoffs at the gaming technology company. Shares jumped nearly 5% in extended trading.
Unity said in a regulatory filing that the cuts are part of the company’s restructuring plan. The company told investors in November that it would launch a “comprehensive review” of its product portfolio and conduct a financial review that “will likely include discontinuing certain product offerings, reducing our workforce and reducing our office footprint.”
Unity said in the filing that it is unable to “reasonably estimate the costs and charges related to this reduction, which is expected to be substantially expensed in the first quarter of 2024.”
Last year was rough for Unity. In May, the company announced a round of layoffs affecting 600 employees, or about 8% of its workforce, in a move Unity said is intended to help create “long-term and profitable growth.”
In September, Unity announced a pricing change that angered a number of developers who rely on the company’s technology to create video games. The Game Developers Consortium protested the change, saying in a public letter that it “puts small and large game developers at risk” and was “made without any industry consultation”.
The following month, John Riccitiello stepped down as Unity’s CEO, also stepping down as chairman and leaving the board. James Whitehurst, former CEO of Red Hat, was named interim CEO, while Roelof Botha, lead independent director of Unity’s Board and partner of Sequoia Capital, became chairman.
While the stock is up more than 40% for the year, it lost nearly half its value from July to the end of October. Unity missed analysts’ expectations in its third-quarter earnings report and missed quarterly guidance.
“Our results in the third quarter were mixed,” Unity said in a letter to shareholders at the time. “While revenue was within guidance, we believe we can do better.”
WATCHES: Unity Software’s John Riccitiello is stepping down as president and CEO
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