Unity Software (NYSE:U) joins the growing list of tech enterprises announcing layoffs in 2023. The software solutions provider is terminating about 284 employees. Unity stock commands a Moderate Buy consensus rating on TipRanks based on eight Buys, four Holds, and one Sell. Further, analysts’ average price target of $37.54 implies 15.94% upside potential.
According to a Wall Street Journal report, Unity’s CEO, John Riccitiello, blamed duplication in job roles and a weak economic environment for job cuts.
Besides for Unity, Microsoft (NASDAQ:MSFT) could also announce job cuts soon. However, the scale of layoffs is unknown.
Will Tech Layoffs Continue in 2023?
2023 could be a challenging year for workers in the tech space. High inflation, rising interest rates, global economic uncertainty, and overstaffing are the primary reasons forcing tech companies to cut their workforce.
Earlier this year, Amazon (NASDAQ:AMZN) announced plans to cut over 18,000 jobs. Meanwhile, Salesforce (NYSE:CRM) stated that it would remove about 10% of its total workforce.
Per layoffs.fyi, a firm that tracks tech layoffs, 104 tech companies have laid off 26,061 employees in 2023, which is much higher than the prior year period. Given the continued uncertainty, more tech companies may reduce their staff strength as the year progresses.