Unity, the popular game engine maker, has announced an additional 25% reduction in its workforce, resulting in 1,800 job cuts. This comes on the heels of 1,300 layoffs since mid-2022, as the company aims to refocus on its core game engine business.
Kelly Ekins, Unity’s Director of PR, expressed gratitude to the affected employees for their dedication and contributions, stating that the decision was not taken lightly. The layoffs will impact all teams and are expected to be completed by March, with further internal changes to follow.
The company’s recent financial statements reveal ongoing struggles to turn a profit, despite generating billions in annual revenues. Unity reported net losses of $859 million for the 12 months ending in September 2023, prompting the need for significant restructuring.
Following the layoff announcement, Unity’s stock price initially rose but has since declined to its lowest level since mid-December. The stock is currently down nearly 40% from its late 2020 IPO and over 80% from its peak in late 2021.
Interim CEO Jim Whitehurst, the former CEO of Red Hat, outlined plans for a ‘company reset’ in a shareholder letter, which includes discontinuing certain product offerings, reducing the workforce, and minimizing office space. These measures aim to refocus on Unity’s core offerings, such as the Unity Editor and Runtime, and Monetization Solutions.
Whitehurst’s strategic vision follows the departure of former CEO John Riccitiello, who resigned abruptly in October after nine years at the helm. The company has been undergoing significant changes since then, signaling a shift in direction under new leadership.
