According to persons acquainted with the subject, Unity Software U -5.56%decrease; red down pointing triangle is currently in the process of carrying out its third and largest wave of layoffs in the past year. Unity Software is following other companies in the technology industry and beyond in reducing their workforces as fears of a recession grow.
According to persons familiar with the matter, San Francisco-based Unity is planning to cut approximately 600 employees, which represents approximately 8% of its staff. They added that the company intends to shrink its global network of offices over the next few years to fewer than 30 locations, down from 58 at the present time. After the layoffs, the company will have approximately 7,000 workers.
As a direct response to the deteriorating state of the economy, Unity Corporation initiated two rounds of layoffs, the first in January of this year and the second in June of last year, resulting in the termination of more than 500 employees.
Software company’s 600-person layoff follows tech and other employment layoffs.
The layoffs in January were also a reflection of the necessity to cope with a duplication of responsibilities that arose as a result of the business’s acquisition of ironSource, an Israeli ad-tech company, for $4.4 billion the previous year
Unity is a platform that allows for the development of many software applications in addition to video games. Advertising and paid subscriptions are the primary sources of revenue for the company.
Adjusting for one-time costs and expenses, the business reported its first quarterly operating profit since going public in 2020, and it was for the period that ended in December. It announced a record-breaking $1.39 billion in revenue for the entirety of 2022.
Despite this, Unity’s sales growth was noticeably more subdued in comparison to the previous year, and the company’s most recent earnings release featured a revenue prediction that fell short of what Wall Street analysts had anticipated. The most recent quarterly results report for the corporation are scheduled to be made public the following week.
Since the beginning of the year, the price of a share in Unity has decreased by 11%, while the price of a share in the tech-heavy Nasdaq Composite Index has increased by 15% over the same time period.
At the beginning of the year 2023, layoffs were widespread throughout the technology industry. These layoffs affected employees at Microsoft, Google, and Facebook’s parent company, Meta Platforms. In some instances, the reductions came as a direct result of layoffs that were carried out the previous year, when businesses first began to experience the consequences of inflation and rising interest rates. Others claimed that in recent years they had hired an excessive number of staff members.