Unity Software (NYSE:U) is slashing its workforce for a third time due to growing recessionary concerns. According to The Wall Street Journal, the company is laying off 600 workers, or 8% of its workforce, and also intends to reduce the number of global offices by almost 35%.
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The company provides a software platform for creating and operating interactive, real-time 3D content.
Nearly 500 employees were let go in the most recent two rounds of job cuts, which took place in January and June of last year. Apart from a weak economic environment, the company’s performance is suffering from a slump in the mobile gaming and advertising industries.
These factors are likely to have impacted the company’s first-quarter results, which are scheduled to be released on May 10, 2023. Unity is expected to report revenues of $481.5 million and a loss of $0.03 in the first quarter, according to analysts.
Layoffs Across Sectors
Numerous layoff announcements have been coming from various sectors since mid-2022. The performance of companies is being impacted by high rates of inflation, rising interest rates, the unpredictability of the global economy, and staffing shortages.
Morgan Stanley (MS) is the most recent company to make significant layoffs, intending to eliminate 3,000 positions. Additionally, Lyft (LYFT), a ride-hailing company, plans to slow hiring while laying off about 1,100 people.
Is Unity a Buy or Sell?
On TipRanks, U stock has a Moderate Buy consensus rating based on six Buys, five Holds, and one Sell. The average stock price target of $41.90 implies 65.6% upside potential. Shares of the company have lost 6% so far in 2023.
