Unity Software Drops After Announcing Portfolio Reset, Cost Cuts
- Company is exiting businesses with $283 million in sales
- Cost reduction efforts aim to save $250 million annually
Photographer: Pavlo Gonchar/SOPA Images/LightRocket
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Unity Software Inc. fell as much as 20% in extended trading after announcing it will exit some businesses to focus on its main products for video game creators.
The company plans to leave the hardware-components businesses for multiplayer games, and will limit its Professional Services unit to “a few selected strategic engagements,” Unity said Monday in a letter to shareholders. The change in strategy began in the fourth quarter, and should be completed by the end of the current period, the company said.