Unity Software Inc (NYSE:U) is slashing a quarter of its workforce — some 1,800 employees — according to an internal company memo and regulatory filing Monday.
The video game software developer plans to complete the layoffs by the end of March, the company said. The cuts come after interim CEO Jim Whitehurst announced a “company reset” in November.
“We are … reducing the number of things we are doing in order to focus on our core business and drive our long-term success and profitability,” Whitehurst wrote in the memo.
The so-called reset follows a controversial period at Unity. In September, Unity frustrated developers who utilize the company’s software to create video games by introducing what it called the Unity Runtime Fee (URF). The URF charges developers each time a game is downloaded, once it hits certain revenue and download thresholds.
Ultimately, Unity moderated the policy change in response to the backlash, and then-CEO John Riccitiello retired in October.
Shares of Unity rose more than 3% Monday and have added another 3.6% in extended trading.