U - Unity Software to lay off 25% of its workforce

2024-01-08 18:45:45 ET

Unity Software Inc (NYSE: U) is up 5.0% in extended hours on Monday after announcing plans of lowering its global headcount.

How many employees will be laid off?

The gaming technology company will lay off about 25% of its workforce or some 1,800 employees worldwide as part of a corporate restructuring plan.

Unity Software had recently disclosed plans of a “comprehensive assessment” that it told investors would likely include “discontinuing certain product offerings and reducing workforce”.

The New York listed firm came in shy of revenue estimates in its latest reported quarter in November. It also refrained from offering guidance for the future at the time.

Shares of Unity Software Inc are still up close to 60% ever since.

What would the layoff cost Unity Software?

Unity is not able to “reasonably estimate the costs in connection with this reduction”, as per its filing on Monday.

The game software development company had cut some 600 roles in May of 2023 to generate “long-term and profitable growth”. It expects the layoff announced today to be executed in the first three months of 2024.

The news arrives shortly after James Whitehurst took over as the chief executive of Unity Software Inc after John Riccitiello stepped down from the role. Whitehurst has previously served in a similar capacity at Red Hat.

Unity lost 32 cents (adjusted) on a per-share basis in its latest reported quarter. Still, Wall Street has a consensus “overweight” rating on shares of the tech stock.

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