Unity announces 25% reduction in workforce as a part of “company reset”
In a recent filing with the Securities and Exchange Commission, Unity Software — the company whose gaming engine perhaps underlines all major modern games — declared its intention to implement a substantial reduction in its workforce. This move is part of a broader corporate restructuring initiative – a “company reset” – aimed at concentrating efforts on core business operations and fostering sustained, long-term growth and profitability.
Unity has been undergoing a series of workforce adjustments over the past year, with the latest round affecting approximately 25% of its employees—equivalent to 1,800 employees. This decision, made in the context of a company reset announced in November 2023, signifies a comprehensive restructuring across all teams and functions. “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,” Kelly Ekins, Unity’s director of PR, announced in a statement. “This decision was not taken lightly, and we extend our deepest gratitude to those affected for their dedication and contributions,” she added.
This development is not unexpected, given that Unity has faced challenges and controversies, particularly surrounding changes to its pricing model and subsequent layoffs. Last year’s alterations to the pricing structure, coupled with a proposed runtime fee, led to significant backlash from developers and prompted the resignation of the then-CEO, John Riccitiello.
To add to this, Unity has also encountered financial challenges, prompting a concerted effort to enhance long-term profitability. The current round of layoffs aligns with a broader company reset, indicating a comprehensive strategy to streamline operations and refocus on core competencies. James Whitehurst, former president of Red Hat, assumed the role of interim CEO following Riccitiello’s departure.
In fact, Unity’s impact extends beyond the gaming realm, with its game engine being widely used in film, animation, and other industries for 3D visualization and virtual reality. The global impact of Unity’s software is substantial, as it serves as the foundation for a myriad of applications and visual experiences. The ongoing transformations within Unity Technologies carry implications for the broader game development community.
Developers who have relied on Unity’s game engine for its accessibility and versatility are keenly observing how these changes might affect their workflows, licensing costs, and the overall ecosystem. Unity’s ability to navigate these challenges while maintaining its commitment to user-friendly development tools will be pivotal in determining its future success. Currently, over 1.1 million game creators relying on its software toolkit each month. Despite its prominence, the company’s stock has experienced fluctuations, currently down from its all-time high in November 2021.
