Unity Software is reportedly conducting its third and biggest wave of layoffs to cut back overhead costs.

Sources say the company is cutting approximately 600 jobs, or around eight percent of its workforce, leaving it with about 7,000 employees after the layoffs. 

The layoffs are part of Unity’s plan to reduce its global network of offices to less than 30 from the current 58.

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Unity had already laid off over 500 employees in two previous rounds of cuts, in June 2022 and January 2023, in response to adverse economic conditions.

The cuts in January happened due to its need to limit duplicate roles following its $4.4 billion acquisition of Israeli ad-tech company ironSource last year.

Although Unity generated record revenue of $1.39 billion in 2022 and posted its first quarterly operating profit since going public in 2020, its revenue growth slowed significantly last year. 

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Its most recent earnings report included a revenue forecast below Wall Street analysts‘ expectations. 

As a result, shares of Unity have fallen 11 percent since the start of the year, while the tech-heavy Nasdaq Composite Index is up 15 percent over the same period.

Tech-industry job cuts have dominated at the start of 2023, with companies like Facebook parent Meta Platforms, Google parent Alphabet, and Microsoft also announcing layoffs. 

Some cuts were made last year in response to inflation and rising interest rates, while others resulted from companies acknowledging an over hiring during recent years.

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