(Bloomberg) — Unity Software Inc., which makes the technology underpinning many popular video games, eliminated 4% of staff, adding to a procession of job cuts in the tech industry.
The terminations amounted to more than 200 of the 5,900 or so employees of the San Francisco-based software company.
The move was part of “a continued planning process” that reflects the company’s long-term priorities, Unity said in a statement Wednesday.
Unity’s 3D graphics technology provides the architecture for hundreds of video games, including indie hits like Among Us and Activision Blizzard Inc.’s Hearthstone.
Recently, applications for its engine have expanded into movies, artificial intelligence and 3D simulations, contributing to the company’s $11.7 billion market valuation. Unity has lured executives from Amazon.com Inc., Electronic Arts Inc., Uber Technologies Inc.
and Zynga Inc. and is considered an attractive, growing company to work for.
Unity has courted investors by embracing hype around the metaverse. The company has also made splashy acquisitions, including avatar technology company Ziva Dynamics for an undisclosed sum and visual effects company Weta for $1.63 billion.
Metaverse stocks have dipped in recent months, with companies like Meta Platforms Inc.
and Roblox Corp. taking big hits. Unity’s shares are down 80% from its $201 high in late 2021. Still, Unity reported $320 million in revenue in the first quarter of 2022 — a 36% increase from the same period in 2021.
John Riccitiello, the chief executive officer, had told staffers in an all-hands meeting earlier this month that their jobs were secure and that the company had no plans for layoffs, according to the video game website Kotaku, which reported on the cuts earlier Wednesday.
Also on Wednesday, another video game company, Pokemon Go creator Niantic Inc., terminated 8% of its staff.
It followed a parade of other companies, including Netflix Inc., PayPal Holdings Inc. and Substack Inc.
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