Unity cuts 25% of workforce in latest restructure attempt

Unity cuts 25% of workforce in latest restructure attempt

Almost 2,000 employees are due to be laid off by gaming software developer, Unity, as first reported by The Wall Street Journal.

A securities filing on Monday (Jan 8.) outlined plans to let go around 1,800 workers, which equates to roughly 25% of the company’s entire workforce.

The San Francisco-based business cites the reasons behind the decision as a way to restructure and refocus on its core business, with the overall aim to return to profitability. This follows a troubling time for Unity after it upset developers by introducing and then partially u-turning on a questionable runtime fee for its game engine.

In a message to shareholders, Unity says it aims to emerge from the restructuring as a “leaner, more agile and faster-growing company.”

In September last year, the company rolled out significant concessions to its pricing model for developers following backlash over its plans to charge developers for gaming installations. That move led to the resignation of CEO John Riccitello, with former IBM president James Whitehurst stepping in to serve as interim president and CEO ever since.

These most recent cuts are in addition to more than 1,100 jobs being removed since 2021, the most recent being 265 workers being fired last November in what was being described as a “reset.” There have also been 14 office closures globally.

Unity isn’t alone in the gaming industry cuts

Despite reporting record profits for 2022, Unity has missed revenue target forecasts over the last three quarters, leading to its latest move to restructure the business.

However, Unity is not alone in what appears to be a turbulent time for the industry’s biggest companies. In Engadget’s 2023 video game roundup, it was reported that the likes of Embracer Group, Square Enix Montreal and Gearbox Software had laid off more than 900 employees.

In addition, big players such as Sony, Sega and Electronic Arts cut almost 1,500 workers between them, with EA’s layoffs in particular equating to 6% of its overall workforce and Hasbro laid off 1,100 workers from its Wizards Of The Coast subsidiary just before Christmas. Meanwhile, on Jan. 9 language learning app, DuoLingo, announced it was cutting back on contractors in a switch to AI.

Featured Image: Unity

James Jones

James Jones is an experienced journalist, editor, podcaster and content creator, with over a decade of experience writing news and features for a variety of online tech and sport publications.

The post “Unity cuts 25% of workforce in latest restructure attempt” by James Jones was published on 01/09/2024 by readwrite.com