Embattled San Francisco gaming company Unity Software Inc. is starting its year with the grim news that it is cutting roughly 25% of its headcount, equivalent to some 1,800 workers, according to a regulatory filing.
The SEC filing states that the workforce reduction—which ranks as its largest-ever layoff—is part of a larger effort to refocus the company around its core business.
Unity's share price was up 3.18% following the news of the job cuts.
A company spokesperson said the job cuts will affect all teams and are meant to execute on the plan described by interim CEO Jim Whitehurst in his November letter to shareholders, which laid out how he plans to develop a “more focused portfolio" at Unity.
Whitehurst took over management of the company after the departure of former CEO John Riccitiello, who presided over a disastrous change to the company's pricing model that led to a user revolt and was later rolled back.
Soon after the letter was released, the company cut 265 employees and ended a commercial agreement with New Zealand-based visual effects company Weta FX—co-founded by Lord of the Rings director Peter Jackson.
The company has also announced plans to significantly pare back its real estate footprint, shutting down 14 offices around the world and cutting its office space in San Francisco. The company currently rents 86,000 square feet of space across two Downtown San Francisco buildings at 30 Third St. and 760 Market St. The leases are set to expire in August 2025.
Over the past year, the company has been steadily shedding headcount in a series of layoffs, including 600 jobs in May and 300 jobs last January. However, the recent job cuts vastly outnumber previous reductions.