Unity Software plans to lay off 1800 employees in restructuring push

A major shake-up is underway at Unity, the gaming technology company. In a move that will see 1,800 jobs slashed - representing a 25% decrease in workforce - the company states this is a step in a broader corporate restructuring plan.

• Stock Effect: The announcement of job cuts spurred a 5% surge in the company's stock in extended trading. Unity has made clear that the exact costs and charges associated with this workforce reduction cannot be reasonably estimated at this moment but are expected to be incurred primarily in Q1 2024.

• Staff Cuts v.2: This is not Unity's first round of layoffs. Last May, the company let go of 600 employees (around 8% of its workforce), with the aim of promoting "long-term and profitable growth."

• Previous Updates: The company instigated changes in pricing last September, a decision that drew criticism from a consortium of game developers who argued it could jeopardize both small and large game developers.

• Changes in Leadership: Unity's former CEO, John Riccitiello, left his position and stepped down as chairman, paving the way for Jim Whitehurst, former CEO of Red Hat, to step in as interim CEO and Roelof Botha, a Sequoia Capital partner, to assume the position of chairman.

While Unity's shares saw an impressive 40% rise over the year, they also experienced a roughly 50% drop between July and October.