Unity (NYSE:U) layoffs are a hot topic on Tuesday as the video game software company prepares to reduce its total headcount by 25%!
These layoffs will see roughly 1,800 Unity employees lose their jobs as the company seeks to focus more on its core business. The video game software company also says that these changes will set it on the path to “long-term and profitable growth.”
Unity notes that it expects to suffer charges connected to these layoffs but doesn’t have any exact number ready for investors. It also doesn’t say how much it will save from the headcount reductions. What we do know is the company expects to suffer charges during the first quarter of 2024.
What’s Behind the Unity Layoffs?
Unity went through a lot of struggles in 2023, including a lackluster Q3 earnings report. The company is likely bracing for the worst when it releases its Q4 2023 earnings report in February.
Adding to that are previous layoffs that affected 600 Unity employees in 2023. The company also dealt with fallout over changes to its pricing plan that didn’t sit well with video game developers. That even resulted in the company’s CEO stepping down shortly after the changes were announced.
All of this is to say that Unity has an uphill battle ahead of it to win back customer and investor trust.
U stock is down slightly as of Tuesday morning.
Investors looking for more of the latest stock market stories are in luck!
We have all of the hottest stock market news that traders need to know about on Tuesday! Among that is what’s going on with shares of Cyclacel Pharmaceuticals (NASDAQ:CYCC), Grifols (NASDAQ:GRFS) and Elicio Therapeutics (NASDAQ:ELTX) stock today. You can check out more on these matters at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
