Unity Software announced on Monday that it will cut its workforce by 25 percent, or about 1,800 jobs, marking one of the first major tech industry layoffs this year. The company stated that the cuts are necessary to restructure and refocus on its core business for long-term and profitable growth. Last week, Xerox also announced plans to lay off 15 percent of its global staff in an effort to shift its focus to services rather than photocopiers.
These layoffs could signal a tough year ahead for the tech industry, which faced significant layoffs last year due to challenging economic conditions. While the situation has improved for many tech companies, most have yet to regain their pre-pandemic sales momentum. Unity has made job cuts in the past, including 265 in November, and the company said that the decision was not taken lightly and that it is committed to helping affected employees.
The San Francisco-based company’s software powers the video games of over two million developers. Last fall, Unity faced backlash from game developers globally over changes to its pricing structure, which were eventually scaled back after complaints. The former CEO resigned after the controversy.