Key Points:
- Unity Software, a videogame software provider, plans to cut its work force by 25% (around 1,800 jobs) in an effort to restructure and focus on its core business.
- Last year, the tech industry saw significant layoffs due to challenging economic conditions and overestimated company growth projections.
The videogame software provider Unity Software has announced plans to cut its work force by 25%, or roughly 1,800 jobs, in an effort to restructure and refocus its business. The company stated that the cuts are necessary to position itself for long-term and profitable growth. Teams across the company will be affected by the layoffs.
This move by Unity Software comes amidst a challenging time for the tech industry, which saw layoffs of tens of thousands of employees last year. Many tech companies have struggled to regain the sales momentum they had before the pandemic, leading to overhiring and eventual layoffs.
This is not the first time Unity has cut jobs. In November, the company laid off 265 employees following a company “reset” announced by interim CEO James Whitehurst. Unity stated that the decision to cut jobs was not taken lightly and that it is committed to supporting the affected employees.
Unity Software’s software is used by over two million developers to power their video games. The company faced backlash from game developers globally last year due to changes in its pricing structure. These changes aimed to improve profitability but would have resulted in increased fees for developers whose games became more popular. John Riccitiello, the previous CEO, stepped down after the complaints, and the company scaled back some of the changes.
The tech industry layoffs we have seen recently, including this one by Unity Software, suggest that the industry may face another tough year ahead. It remains to be seen if tech companies will be able to recover and regain their past success.