Unity Software Inc., pointing triangle, is cutting off more than 200 employees, becoming the latest technology firm to conduct layoffs amid rising recession fears.
On Tuesday, 284 jobs would be lost. Some of those laid off may be rehired for other roles if they apply for them, according to the business. Unity, a maker of tools for building videogames and other applications, last announced layoffs in June, when it laid off about 225 people. The company stated at the time that it was aiming to better align the size of its employees with its needs.
Some of the newest layoffs at Unity are in response to bad economic trends, such as the sluggish digital advertising market, while others are targeted at decreasing job role duplication as a result of a recent acquisition that brought more than 1,400 individuals to the company’s staff.
Many of the world’s leading IT businesses have announced layoffs as they grapple with the effects of inflation, rising interest rates, and currency challenges. Some have complained that they have hired too many people in recent years.
According to a survey released Tuesday by NPD Group, videogame sales in the United States declined 5% last year to $56.6 billion, the first annual decline since 2016.
Unity, which plans to go public in 2020, has seen revenue growth decelerate in the last year. Unity’s stock increased more than 2.5% on Tuesday, while the tech-heavy Nasdaq Composite Index remained unchanged. They are down more than 70% from a year ago, more than doubling the Nasdaq’s fall.