The layoffs come after an awful year for the company
The Unity Technologiesβ downward spiral continues as the company intends to cut 25% of its workforce β or roughly 1,800 people β in a move it called a βcompany reset.β Itβs the game engine makerβs largest layoff, bigger than all three of last yearβs cuts combined. More than 1,100 people were laid off in 2023, preceded by at least 200 layoffs in June 2022. Unity said in a United States Securities and Exchange Commission disclosure that the layoffs come as Unity βrestructures and refocuses on its core business, and to position itself for long-term and profitable growth.β The layoffs will be completed by March, according to a Reuters report. Unity is known for its game engine software, which is used across the industry on games of all sizes β from indie games to AAA blockbusters. It serves as the foundation for games like Hearthstone, Marvel Snap, Apex Legends, and Among Us. Beyond video games, itβs also used in film and animation, among other industries. Despite itβs ubiquity in the industry, the company is not profitable: It earned more than $1.3 billion in revenue in 2022, but did not make a profit. The companyβs large-scale layoffs began in 2022, but Unityβs problems became larger in 2023 when it announced a controversial new pricing model that was universally panned by game developers. The new runtime pricing was announced in September, with Unity proposing a fee collected per game install after a certain revenue threshold was met. Unity eventually pulled back on those plans after widespread backlash, including a boycott and a βcredible death threat.β But the damage was done. Unity CEO John Riccitiello stepped down in October. James M. Whitehurst, an advisor at the Silver Lake equity investment firm and former IBM president, was named interim CEO.
