Unity Software to Cut 25% of Its Work Force

The videogame software provider Unity Software said on Monday that it would cut its work force by 25 percent, or roughly 1,800 jobs, in one of the first major tech industry layoffs this year.

In a securities filing, Unity said the cuts would allow it to restructure and refocus “on its core business, and to position itself for long-term and profitable growth.” The company added in a statement that teams across the company would be affected.

Last week, Xerox said it would lay off 15 percent of its 23,000-member global staff in the first quarter of 2024, an effort to further shift its focus to services and away from photocopiers.

The cuts signal what could be the start of another tough year for the tech industry, which last year laid off tens of thousands of employees in the wake of challenging economic conditions and overly rosy projections for company growth. While many tech companies have said the worst is behind them, few have been able to regain the prepandemic sales momentum that propelled them to overhire in the first place.

Unity has cut jobs before, including 265 in November after the interim chief executive, James Whitehurst, announced a company “reset” during an earnings call.

The company said in its statement that the “decision was not taken lightly” and that it was committed to helping affected employees.

The San Francisco-based company’s software is the underlying fixture powering the video games of over two million developers.

Last fall, the company faced a major backlash from thousands of game developers globally over a change to its pricing structure. The new fee structure, which was meant to finally push the company into profitability, would have charged developers who relied on the software more as their games gained popularity.

In October, John Riccitiello, a main proponent of the pricing change, stepped down as chief executive after nine years at Unity. The company scaled back some of the changes after the complaints.