(Bloomberg) -- 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. 

Unity said the businesses it’s exiting contributed a total of $283 million in revenue last year and operated at a significant loss in adjusted earnings before interest, tax, depreciation and amortization. 

“We believe that we are making the right interventions to win with customers for many years to come through a more focused portfolio,” the company said in the letter.

Unity makes software used by video-game creators. The San Francisco-based company announced last month that it was reducing its workforce by 25% — or about 1,800 employees. Additional cost reduction efforts will lower its operating expenses by $250 million annually. 

After completing the restructuring efforts, the company said it will focus on boosting revenue growth in the second half of 2024.

The company projected that 2024 revenue from its core businesses will be $1.76 billion to $1.8 billion. Total sales were $2.2 billion in 2023.

The shares declined to a low of $26.50 in extended trading after closing at $33.04 in New York. The stock has dropped 19% this year.

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