Latest News by Industry
Unity Software (U), a leading videogame software provider, is set to lay off about 25% of its workforce, totaling 1,800 jobs, as part of its ongoing 'company reset'. This announcement was followed by a nearly 5% increase in Unity shares in after-hours trading, marking a significant turn in the company's restructuring efforts.
The San Francisco-based company's decision is reported to be the largest layoff in its history, with the process expected to be completed by the end of March. Unity Software, though not a household name outside the gaming industry, is pivotal for over 1.1 million game creators monthly. Its software toolkit is used in popular games like “Pokemon Go,” “Beat Saber,” and “Hearthstone.” According to Reuters, Monday's job cuts will span across all teams, regions, and business areas.
This drastic step follows the appointment of interim CEO Jim Whitehurst, who announced a 'company reset' in November. In a memo to employees, Whitehurst emphasized the need to reduce the company's scope to concentrate on its core business for long-term success and profitability. While no specifics on the structural changes were provided, a spokesperson confirmed that more changes are expected. This marks the fourth round of layoffs since July 2022, highlighting the company's challenging period.
Unity Software has experienced several upheavals recently. In September last year, a proposed “runtime fee” pricing policy led to backlash from developers and a significant drop in share price, eventually forcing the company to revise the policy. The controversy led to the retirement of then-CEO John Riccitiello, with Jim Whitehurst stepping in as interim CEO and Roelof Botha as board chairman.
The first phase of the 'company reset' initiated in November involved terminating a deal with a visual effects company, office closures, and abolishing mandatory in-office work. The recent layoffs represent the second phase of this reset strategy.
Founded nearly two decades ago by three Danish engineers, Unity gained prominence for its game engine that simplifies game development across various platforms, including mobile and virtual reality. It has since expanded its reach to other sectors like film and automotive for 3D visualization and VR applications. After its 2020 IPO, Unity's stock peaked at around $200 in November 2021 but fell below $30 last year. Since Whitehurst's reset announcement, the company's shares have surged nearly 40%.