Unity Announces Significant Workforce Reduction, Cutting 25% of Staff

Unity, the renowned game engine creator, has revealed plans to lay off approximately 25 percent of its workforce, affecting around 1,800 employees. The decision was disclosed in a filing with the Securities and Exchange Commission, where the company explained that the layoffs are part of a strategic restructuring to refocus on its core business and position itself for sustained and profitable growth.

This marks yet another round of layoffs for Unity, following a series of workforce reductions within the past year. In November of the previous year, the company implemented cuts affecting 265 employees. The current announcement raises questions about whether these new layoffs are additional to those previously disclosed, and requests for clarification from Unity are pending.

Last year's layoffs coincided with modifications to Unity's pricing model, causing dissatisfaction among developers. The backlash prompted Unity to reconsider aspects of the new policy, leading to the resignation of former CEO John Riccitiello.

In a statement to The Verge, Kelly Ekins, Unity's director of PR, expressed the company's perspective on the recent decision: "Today, as part of our company reset outlined in our Shareholder Letter on November 9, 2023, we announced that Unity has made the difficult decision to implement a workforce reduction, targeting approximately 25% of our total workforce across all teams. This decision was not taken lightly, and we extend our deepest gratitude to those affected for their dedication and contributions."

Unity, widely used in popular games such as Fall Guys and Pokémon Go, joins a growing list of major gaming companies grappling with layoffs. In 2023, industry giants like Epic Games, EA, Naughty Dog, and others collectively issued job cuts affecting more than 9,000 individuals, underscoring the challenges faced by the gaming sector.